Toyota and Panasonic Establish a Joint Venture!

What Will They Create Together?

A press conference was held today at 5:00 p.m., where Toyota Motor Corporation (7203) and Panasonic (6752) announced that they will establish a new company by the end of 2020. Although they had announced a partnership in December 2017, this latest announcement regarding the establishment of the new company marks a concrete step forward.

So, what will the new company be making

? Rectangular batteries

for vehicles. We’re truly in the age of EVs now. Where did bioethanol go…? ( ；∀；)

It appears Toyota will hold a 51% stake and Panasonic 49%, but the products manufactured will, in principle, be sold widely to automakers through Panasonic.I thought Toyota was being pretty generous. Well, I suppose the goal is to ensure stable production of Toyota’s EVs and strengthen their price competitiveness as a result. They’ll supply batteries to Subaru and Mazda, with Toyota’s subsidiary Daihatsu leading the way. Since they’re also encouraging Honda to adopt them, I’d like to root for them as they boost competitiveness among Japanese companies and take on the rising Chinese and South Korean players.

What is an all-solid-state battery?

In conventional batteries, there is an electrolyte between the positive and negative electrodes, which acts as a mediator connecting the two. However, the presence of this electrolyte carried the risk of leakage and fire. An all-solid-state battery is one that eliminates this electrolyte. I found a good illustration, so I’ll include it here.

(Source: Nikkei ETECH)

I believe the main advantages are the following three points:

① Improved safety; ② Capable of charging

to 80–90%

in just a few minutes; ③ Low self-discharge and potential for flexible designs

. On the other hand, I think the main disadvantages are the following two:

① Concerns regarding EV use (separate from the risk of leakage; materials with high conductivity are flammable)

② Difficulty in mass production. Even though there’s no risk of

leakage, the fact that they’re flammable is still dangerous, isn’t it? (-_-;) lol I really hope they can achieve both safety and mass production and expand their market share in this new field!

Toyota’s Stock Price and Yield

Here are Toyota’s current stock price and dividend yield.

(Source: Rakuten Securities)

At 678,400 yen for 100 shares, with a dividend of 22,000 yen, the yield is 3.2%.Back in June 2016, the price was 4,917 yen per share at one point, so I really regret not buying then (´；ω；｀) *sniff* Well, I’m sure another chance will come—surely, surely…

Panasonic’s Stock Price and Yield

Next up are Panasonic’s stock price and yield.

(Source: Rakuten Securities) The stock price for 100 shares is 106

,405 yen, and the dividend is 3,000 yen, so the yield is 2.8%.The stock has been on a downward trend since the winter of 2017, but depending on future developments, that could change significantly

. These are both companies I’ve had on my watchlist for a long time but couldn’t buy because the price never dropped to my target, so I’m looking forward to seeing what their new ventures bring. And I’m rooting for the growth of Japanese companies as they continue to expand and collaborate with various other businesses. Go for it!