TOKYO, JAPAN: Shares of Japanese automaker Toyota experienced a significant surge of 5% on Tuesday following the company’s announcement that it will introduce a complete range of battery electric vehicles (EVs) featuring “next generation” batteries starting in 2026.

Toyota’s new EV unit, called BEV Factory, which was established in May, will be responsible for the development and production of these vehicles.

During a presentation on Tuesday, Takero Kato, the president of BEV Factory, revealed that Toyota is targeting an impressive driving range of 1,000 kilometers (620 miles) for its EVs. Kato further stated that BEV Factory aims to manufacture approximately 1.7 million vehicles by 2030.

Toyota has set ambitious sales targets for its all-electric vehicles, aiming to achieve annual sales of 1.5 million units by 2026 and 3.5 million units by 2030.

In addition to the EV lineup, Toyota is actively developing a method for mass producing all-solid-state batteries, specifically designed for battery electric vehicles. The company plans to commercialize this technology between 2027 and 2028. Toyota aims to achieve a 20% improvement in cruising range with the all-solid-state batteries compared to the current battery technology.

Furthermore, Toyota is also working on a higher-specification model, currently under research and development, which targets a remarkable 50% improvement in cruising range compared to the current product.

Significantly, Toyota revealed a technological breakthrough that overcomes the challenge of battery durability in its all-solid-state batteries. As a result, the company is considering integrating this technology into its conventional hybrid electric vehicles (HEVs) and expediting its development as a battery solution for battery electric vehicles (BEVs).

HEVs are vehicles powered by a combination of a conventional internal combustion engine and one or more electric motors.

This strategic shift in Toyota’s EV approach could be attributed to the leadership of the new CEO, Koji Sato, who assumed the position in April. Sato previously stated in February that the company would “accelerate the development of BEVs with a different approach than before,” as reported by Nikkei. Toyota’s recent announcements reflect its commitment to advancing electric vehicle technology and responding to the evolving demands of the automotive market.