Benzinga | Dec 3, 2021 06:49AM EST

Toyota To Launch Electric Sedan In China Using Warren Buffett-Backed BYD's Core Tech

Toyota Motor Corp (NYSE:TM) plans to launch a small electric sedan in China late next year using local partner BYD Co's (OTC:BYDDY) core technologies, Reuters reported citing sources.

What Happened: The Japanese automaker will use BYD's less bulky lithium-iron-phosphate (LFP) Blade batteries and its lower-cost engineering.

In April, Toyota will unveil the electric sedan as a concept car at the Beijing auto show.

The electric sedan that Toyota plans to launch will be slightly larger than the compact Corolla, known to be the world's best-selling car of all time. Interestingly, BYD's popular F3 saloon launched in 2005 was inspired by Corolla.

Pricing Strategy: Toyota, which has been slow to switch to electric vehicles, could pitch the electric sedan below Tesla Inc's (NASDAQ:TSLA) Model Y and Nio Inc's (NYSE:NIO) ES6. It is likely to be priced under $30,000, a price segment that Tesla is eyeing as well with its small car in the coming two years.

See Also: Tesla Places Order For 10 GWh Of LFP Batteries With Warren Buffett-Backed Automaker BYD

Why It Matters: China's BYD -- backed by billionaire investor Warren Buffett -- had last year unveiled a new blade battery cell that uses the LFP chemistry and looks like a blade.

The company at the time said it would use the more safe and dense battery pack in its upcoming electric vehicles and was also in talks with other automakers to supply the cells. The company has reportedly secured an initial 10 GWh order for LFP battery cells from Tesla.

Toyota-owned truck maker Hino Motors Ltd and BYD had last year in April announced the registration of a new joint venture for research and development of battery electric vehicles.

Price Action: TM stock closed 2.73% higher at $183.16 a share on Thursday.

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Photo by Admiral_Lebioda via Pixaby