What happened: Toyota will announce a new electrification strategy this week that includes a significant number of partnerships with Chinese parts manufacturers, according to Axios. The plan will include a roadmap for the company’s EV business model, which outlines plans for “personal EVs.” The Chinese partnerships will be focused on batteries and the production of future battery-powered vehicles. Axios says that the plan is not being widely publicized in the US because of “sensitivity to strained US-China trade relations.”
Why it’s important: Last year, Toyota announced plans to produce 10 different battery electric vehicle (BEV) models for the Chinese market, with intentions to bring them to Japan, then the US and Europe next. China’s EV market has experienced continued growth despite an overall slowdown in auto sales. Bloomberg recently reported on possible incoming government regulations regarding EV manufacturing, but the rules seem like they will have the biggest impact on domestic startups looking to outsource production to more mature firms, and will likely have little effect on Toyota’s planned partnerships.