Shanghai (Gasgoo)- Toyota Motor Corporation (hereinafter "Toyota") and the Shanghai Municipal People's Government have reached a cooperation agreement on initiatives to support China's green, low-carbon development, according to a press release Toyota issued on Feb. 5, 2025.
Under this agreement, Toyota has decided to establish a LEXUS battery electric vehicle (BEV) and battery R&D and manufacturing company in Jinshan District, Shanghai.
The Chinese government has set targets to peak carbon emissions by 2030 and achieve carbon neutrality by 2060. Consistent with these goals—and as part of its corporate social responsibility—Toyota has long prioritized reducing CO₂ emissions and introduced its Environmental Challenge 2050 strategy. In pursuit of the vision to "achieve green, low-carbon development through new quality productivity," Toyota said it will continue collaborating with partners such as FAW Group and GAC Group. This latest agreement with the Shanghai Municipal People's Government, a longstanding partner, further reinforces that commitment.
Guided by relevant authorities, the two parties will extend their initiatives from Shanghai to the broader Yangtze River Delta and beyond. Their collaboration will cover a range of measures, including the development of logistics networks, partnerships among upstream and downstream enterprises in the industrial chain, and the application of advanced technologies in hydrogen energy, intelligent autonomous driving, and battery recycling. Together, they aim to create a benchmark carbon-neutral project with global influence, contributing to the transformation toward a green, low-carbon future.
Amid the surging demand for new energy vehicles—especially BEVs—in China, a market where related technologies are leading globally, Toyota plans to establish a wholly-owned BEV and battery company in Shanghai. The new entity will leverage the region's advanced industrial chain, robust logistics network, skilled talent pool, and expansive market to develop pure electric models under the LEXUS brand, delivering products that meet Chinese customers' expectations at a rapid pace. Production at the facility is scheduled to commence in 2027.
Toyota added that, in its pursuit of environmental sustainability, the new plant will also incorporate groundbreaking production technologies, aiming to create a production environment unlike any seen before.
