Toyota has told investors that its battery business is on track for an increase in costs.
The Japanese automaker announced Tuesday that its full-year profit will rise by 15% in 2021, to $2.9 billion.
It said the battery business will continue to grow at a compound annual growth rate of about 9%.
Analysts have said that a full-time battery manager will be needed to meet the growing demand.
Toyota will invest about $1 billion over the next four years into improving the battery system, and has a $100 million fund to invest in developing battery technology.
It expects to reach a cost goal for 2021 by 2023.
It’s the first time Toyota has reached a target for the battery company.
The company has been ramping up production of its electric cars.
Its first Prius, the C-Max, went on sale in January.
The car has already sold more than 1.3 million, and the company plans to add 1 million cars to its fleet by the end of 2021.
The Prius C is a hybrid with a plug-in hybrid drivetrain and is available in six trim levels.
It comes with the option to go electric or use gasoline for electricity.