Toyota, Shanghai government sign strategic cooperation agreement for battery, Lexus NEV project in China

Shanghai (Gasgoo)- On April 22, the Shanghai Municipal People's Government and Toyota Motor Corporation signed a strategic cooperation agreement in Shanghai, signaling a deeper partnership in the field of new energy vehicles (NEVs) and a shared commitment to China's green and low-carbon transition.

Under the agreement, Toyota will establish a comprehensive NEV company in Shanghai that integrates research and development, manufacturing, and sales. The new entity will focus on producing Lexus-branded pure electric vehicles and developing advanced battery capabilities under the Toyota marque. The agreement marks a significant milestone in the Lexus NEV project's implementation, reinforcing both Shanghai's push to build a modern industrial system and Toyota's global electrification strategy.

In addition to vehicle production, the two parties will collaborate extensively across various areas including coordination along the NEV industry chain, intelligent driving technologies, hydrogen energy, battery recycling and reuse, as well as logistics and supply chain development. These joint efforts aim to accelerate the transformation toward a greener and more sustainable economy.

At the signing ceremony, the Jinshan District Government and Toyota China signed a memorandum of understanding, while Shanghai New Jingshan Industrial Investment Development Co., Ltd. inked an investment service agreement with Lexus (Shanghai) New Energy Co., Ltd.

Peng Xijun, General Manager of Shanghai New Jingshan Industrial Investment Development Co., Ltd., revealed that Toyota's total investment in the project amounts to 14.6 billion yuan. The approval process is expected to be expedited, with construction scheduled to begin in June and the first vehicle set to roll off the production line in 2027.