Toyota, VW eye massive costs for EV shift

Toyota is planning to spend big on batteries, in a bid to lead what is now a key automotive technology.

On Tuesday (September 7) the world's number-one carmaker said it would spend $13.5 billion on battery tech and supplies by 2030.

Masahiko Maeda is the company's chief technology officer.

He says Toyota is aiming to slash the cost of its batteries by 30%, and increase their efficiency by the same amount.

The company is seen as a front-runner to develop solid-state batteries, which should pack more power and charge faster.

They could replace the lithium-ion batteries used today, though Toyota says development remains a challenge.

Also Tuesday, Volkswagen warned that the cost of shifting to EVs and self-driving cars could be even higher than it previously thought.

The world's number-two automaker has already set out plans to invest $178 billion by 2025.

Speaking at the Munich car show, supervisory board chairman Hans Dieter Poetsch said that might not be enough.

Even so, the German giant says it can fund the massive costs out of its current cash flows.

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