The Japanese giant is targeting a surge in sales over the next two years.
It wants to convert battery capacity for 600,000 of its Japanese-built vehicles to the next-generation battery from 2027.
There is no official news on the performance specifications for the new battery, but it will be more efficient.
It could be a variant of ‘s 2023 that offered more than 800km of .
Why does this matter for Aussie buyers?
A more efficient battery manufacturing process could accelerate production significantly and shift cars to buyers faster.
Wait times on Toyota vehicles have been an ongoing talking point in Australia, especially for popular models the RAV4 and Camry hybrids.
Its much-anticipated new-generation RAV4 was subject to significant delays of almost a year in part due slow production progress.
Toyota sales slid substantially in the first half of 2026, with the carmaker desperate to get its hands on new RAV4 to turn it around.
Units have finally started to ship in significant numbers for Toyota, and the RAV4 took its place as the best-selling car in Australia for July.
A more efficient production process would help the brand to maintain its hold of the Australian market.
Cheaper batteries could also mean lower price tags for buyers, after Toyota hiked the price of the new RAV4 this year.
What is Toyota’s broader battery plan?
Toyota is facing increasingly tough competition from Chinese automakers like and that have huge production capacity and are already shifting plenty of units Down Under.
Toyota is now planning to source batteries for up to 200,000 cars from external suppliers, including Chinese behemoth CATL.
The carmaker’s battery plans don’t stop there, with another new lithium-ion battery due in 2028 boasting 1000km of range and a 10 per cent cost reduction.