Posted on 23 Apr 2025
Toyota Motor Corporation and the municipal government of Shanghai officialised on 22 April their strategic cooperation agreement, which will pave the way for a new NEV plant in the city.
At a signing ceremony, the Japanese carmaker committed to establishing a comprehensive NEV company in Shanghai, integrating R&D, manufacturing and sales activities. As first announced in February, the new firm will focus on producing Lexus-branded battery electric vehicles (BEVs) and batteries, Kallanish notes.
The plant will be fully owned by Toyota and target an initial production of 100,000 cars per year, starting in 2027. Battery production capacity volumes are yet to be disclosed. Construction is expected to commence in June, thanks to an expedited approval process.
As part of the ceremony, Toyota China inked an MOU with the Jinshan District government, where the plant will be based. Shanghai New Jingshaw Industrial Investment Development Co., meanwhile, signed an investment service agreement with Lexus (Shanghai) New Energy Co, unveiling that Toyota’s investment in the project amounts to CNY 14.6 billion ($2 billion).
The agreement with Shanghai authorities also includes coordination along the NEV industry chain, intelligent driving technologies, hydrogen, battery recycling and reuse, plus logistics and supply chain development. The detailed contribution from Shanghai authorities has not been disclosed.
Lexus will unveil its new ES saloon on 23 April at the Shanghai auto show. The carmaker says its new flagship model “refines advanced electrification technologies.”
Source:Kallanish
