Toyota Motor Corporation ( TM ) has entered into an agreement with Panasonic Holdings Corporation (OTC:PCRFY) to make one of their joint ventures, Primearth EV Energy Co., Ltd. (PEVE), a wholly-owned subsidiary.

The move is expected to strengthen the capabilities of mass-producing automotive batteries. The acquisition is scheduled to take place in late March.

Among Toyota ( TM )-affiliated companies, currently PEVE, Toyota Industries Corporation, and Prime Planet Energy & Solutions, Inc. (ownership: Toyota ( TM ) 51%, Panasonic HD 49%) mass produce batteries for hybrid electric vehicles.

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Along with HEV batteries, PEVE plans to begin producing batteries for BEVs and PHEVs. The ability to produce various electric vehicle batteries will enable Toyota ( TM ) to respond flexibly to growing battery demand.

Also, manufacturing competitive batteries will enhance the appeal of Toyota’s electric vehicle offerings while helping achieve carbon neutrality.

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Price Action: TM shares are trading higher by 1.79% at $248.20 in premarket on the last check Tuesday.