Toyota Motor Corporation and Panasonic Corporation have formalized its joint venture deal on the development and manufacture of automotive prismatic batteries. In the joint venture company, which will be established by end of 2020, Toyota will have 51 percent stake while Panasonic will get the remaining 49 percent.

The two companies agreed the new joint venture's business operations will cover research, development, production engineering, manufacturing, procurement, order receipt, and management of automotive prismatic lithium-ion batteries, solid state batteries, and other next-generation batteries.

Toyota will transfer equipment and personnel to the joint venture in the areas of development and production engineering related to battery cells while Panasonic will transfer equipment, other assets, liabilities, personnel, and other items to the joint venture in the areas of development, production engineering, manufacturing in plants in Japan and China, among others, related to the automotive prismatic battery business. Products produced by the joint venture will be sold to various car original equipment manufacturers (OEMs) through Panasonic.

Toyota and Panasonic first announced the plan for a joint automotive prismatic batter in December 2017.