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by
Seneca ESG
- 16 November 2021
Japanese automaker Toyota [7203:JP] claimed to collaborate with four domestic peers on the development of alternative green fuels for traditional cars with internal combustion engines, as reported by Reuters on November 13. The four other automobile companies are Mazda Motor [7261:JP], Subaru [7270:JP], Yamaha Motor [7272:JP], and Kawasaki Heavy Industries [7012:JP]. The alternative green fuels will include hydrogen and synthetic fuels derived from biomass, as the carmakers intend to retain existing workforce and supply chains by doing so other than dropping those and switching to electric vehicle (EV) production.
Toyota has released its plans to launch 15 EV models by 2025 and to invest USD13.5bn in EV batteries through 2030, including the expansion of its battery production capacity and the development of its battery supply system. Among the battery investment plan, Toyota will allocate USD3.4bn to its presence in the US, and the company has announced to build its first battery production plant in the US with USD1.3bn this October. In response to climate actions globally and supporting EV businesses, many automakers are accelerating their deployment of developing and producing batteries, as well as some energy firms aiming at product diversification, while they are also seeking the feasibility of alternative eco-friendly energy sources like hydrogen. Similarly, South Korea’s refiner Hyundai Oilbank and Denmark’s Haldor Topsoe, a company focusing on emission reduction technologies, announced their partnership on November 4 to jointly develop eco-friendly synthetic fuels, like electrofuels and biofuels, to replace fossil fuels used by combustion engine cars.
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