Insights on Toyota’s patent strategy for next-generation vehicles

SOPHIA ANTIPOLIS, France – September 27, 2022 │ KnowMade’s experts in Semiconductor and Energy technologies have compiled an overview of Toyota’s patent strategy. Check out all the information through our four articles:

• Hydrogen-based Fuel Cell Electric Vehicles: a winning bet for Toyota?
• Toyota’s triptych IP strategy on batteries to conquer the EV market
• The vertical innovation path: from materials to power devices and their integration in electric vehicles (EV)
• Toyota Group, a leading IP player in the development of sensors and autonomous vehicles technologies

Uncover Toyota's strategy in EV markets byleveraging patent analysis

In a series of papers, KnowMade gives anew insight into Toyota's strategy to prepare its transition towards EV,hydrogen-fueled vehicles, and AV. “By analyzing Toyota Group's patent portfolio, we were able toperceive the strategies and technologies developed by each company of ToyotaGroup; understand their level of development, their roadmap and see how the IPand related R&D activities can impact the market,” explainsNicolas Baron, CEO of KnowMade. “In particular, KnowMade has highlighted how Toyota is using itsIP to secure its position on key technologies, i.e., batteries, fuel cells,power electronics and autonomous vehicle sensors. Through technologicalanalysis, KnowMade shows the level of development and related investment madeby the company. It also indicates Toyota's global vertical innovation strategythat allows the company to control and secure its position over the wholesupply chain worldwide. Such a strategy is not unusual in the automotive IPlandscape, but the intensity and diversity of Toyota's patenting activity offerthe company a unique IP position.”

Fig. 1: The Toyotapatent strategy for next-generation vehicles exposed.

Leadership in building the fuel cell andhydrogen ecosystem

Full analysis on Toyota FCEV patentactivity here: Hydrogen-based Fuel Cell ElectricVehicles: a winning bet for Toyota?

An early believer in FCEV technology…

Since the 2000s, Toyota has chosen todevelop both the energy storage technologies that will be used in post-thermalvehicles: hydrogen fuel cells and batteries. Toyota is a trailblazing playerfor FCEV, with the commercialization of the Mirai Model in 2014, followed by a second generationin 2020.
For 20years, Toyota Group has built up the largest patent portfolio worldwide relatedto fuel cells, resulting in more than 12,000 patented inventions. The companyinvested heavily in FCEV-related technologies in the 2000s, considering theirbenefits in terms of environmental impact, autonomy, and fast and easyrefueling compared to other types of vehicles. Even after the crisis in 2008,when Toyota reoriented its priorities towards batteries, the group did notabandon its developments on fuel cell-related technologies (see Fig.2).

…with international ambitions in the future FCEV market…

As a global company in a competitivesector, Toyota aims to secure its market share all around the globe. One sideof this strategy consists in filing patents in the locations of HFCEVproduction sites and where the most profitable markets are expected. Indeed,the protection of its inventions can provide Toyota with a truly competitiveadvantage over its competitors, in terms of performance and/or cost. Accordingto the patent portfolio analysis, Toyota mainly targets Japan, USA, China,Germany and, to a lesser extent, the other European countries.

… leveraging synergies inside and outside the group…

Toyota Motor, representing about 75% ofthese patent filings, can rely on all its subsidiaries and affiliates todevelop FCEV technology, such as Aisin Corp, Denso, Hino Motors, etc.Nonetheless, Toyota develops its skills in specific fields and creates anindustrial emulation by forming external partnerships to speed up theinnovative developments throughout the years, mostly with local Japanesecompanies, universities, and research institutes. In 2015, the Japaneseautomaker allowed royalty-free use of its then 5,000+ FCEV-related patentlicenses in order to popularize FCEV and to support the development of thesector.

… across the whole FCEV supply chain…

The company does not focus on one fuelcell technology. Most of its patents deal with generic fuel cell technologiesto keep the freedom to use any kind of fuel cell. The company first developedfuel cell components such as electrocatalysts, membrane electrode assembliesand stacking arrangements. Since 2016, Toyota has been diversifying itsdevelopments along the whole supply chain of FCEV and investigating othertopics like the control of running parameters during fuel cell operation.

… and developing the complete infrastructure required for massadoption of FCEV technology

Toyota Group has adopted a process ofvertical integration of innovation throughout the whole hydrogen supply chain,from its production to infrastructure deployment and its use in Toyota's FCEV.Toyota Group is also involved in the development of several emerging hydrogenproduction technologies, such as high-performing proton exchange membraneelectrolyzers, solid oxide electrolysis cells (SOEC) and photocatalytic watersplitting. Furthermore, its patenting activity also includes hydrogen carriersfor transport and storage, such as metal-organic frameworks (MOFs). “By adoptingsuch a global versatile and vertically integrated strategy, Toyota is a leaderin the production of fuel cells and the hydrogen ecosystem,” saysArnaud Capgras, Technology and Patent Analyst Battery & Materials atKnowMade.

Fig. 2: Time evolutionof Toyota Group's patent publications related to fuel cells and batteries.

Toyota holds all the cards on batteries tosuccessfully manage the transition towards EV

KnowMade's latest work on Toyota'sbatteries: Toyota's triptych IP strategy on batteriesto conquer the EV market

A leading innovator in the field of batteries for EV…

Toyota anticipated the move towards HEVand BEV several decades before it became a market target. Over the years, thecompany has developed a broad and diversified number of technologies linked tobatteries, one of the key components influencing EV performances (autonomy,speed and safety). As part of its development strategy, Toyota has teamed upwith a dense collaboration network on batteries in Japan and abroad. As aresult, its innovations on batteries cover the whole supply chain for currentand future promising technologies, and the company secured its IP position inkey production and commercialization regions for batteries and electricvehicles (Japan, Korea, China, Europe, the US). Toyota shows a strong willingnessto be involved in the improvement of battery performances (energy and powerdensity, charging speed, life duration, etc.) and safety to meet EV marketrequirements. Toyota has chosen to work on the two main leads envisioned toreach these objectives: improve Li-ion batteries, the technology already usedin electrical vehicles; and develop new battery technologies with outperformedcharacteristics.

… continuously improving the mainstream Li-ion battery technology…

On the one hand, the company is improvingcurrent and emerging materials for Li-ion batteries, i.e., lithium metal,lithium titanate (LTO / Li₄Ti₅O₁₂) and siliconon the anode side, NMC/NCA, LFP and olivine silicates/phosphates on the cathodeside, and solid electrolytes on the electrolyte side. It is worth noting thatToyota is today the most important patent assignee on solid-state batteries byfar, with the strongest IP position along the whole supply chain.

… while exploring the benefits of new technologies

On the other hand, Toyota is investigatingnew battery technologies with higher theoretical performances than Li-ionbatteries. The company not only works towards well-known post Li-iontechnologies, i.e., Li-air, Li-S and Na-ion batteries, but also on more emergenttechnologies such as Mg-ion, F-ion, Al-ion, Ca-ion, K-ion and Zn-ion batteries.“Thanks toits strategy, Toyota can control and secure its IP for every material,component and manufacturing process of the battery cells and packs that will beused in its vehicles,” concludes Dr Fleur Thissandier, PhD,Technology and Patent Analyst Battery & Materials at KnowMade.

Toyota joins forces with Denso to developSiC power devices for EV applications

Our comprehensive analysis of thisstrategy: The vertical innovation path: frommaterials to power devices and their integration in electric vehicles (EV)

KnowMade has leveraged its know-how inpatent analysis to describe Toyota's innovation strategy in the field of powerchips and power modules. The analysis focuses on power silicon carbide (SiC)technology as a must-have technology for the next generations of electricvehicles (EV).

Fig. 3: Time evolutionof Toyota Group's patent publications related to silicon carbide (SiC). Patentspublished up to August 2021.

The article provides a comprehensiveoverview of Toyota's SiC activities from an IP perspective, shedding new lighton:

The strong synergy between Toyota Motor and Denso

The collaboration between both companiesstarted a long time ago in the areas of SiC crystal growth technology and SiCpower devices. Nevertheless, they brought it to another level in the early2010s, and started focusing increasingly on the development of trench SiCMOSFET technology. Since 2018, Denso has taken the lead in the development ofSiC MOSFET. Accordingly, Toyota Motor transferred its key patents to Denso inview of the integration of SiC MOSFET in next-generation EV.

The vertically integrated innovation strategy within Toyota Group

Toyota and Denso's patenting activityextends across the whole supply chain, from SiC materials to SiC power devices,modules and circuits (Figure 3). Moving down the SiC supply chain, Toyota's IPactivity puts the emphasis on inventions providing the company with acompetitive advantage in EV applications.

The diversification of technological approaches developed withinToyota Group

Up the supply chain, Toyota's patentportfolio features very broad technology coverage, addressing the mainstreamSiC crystal growth technology (PVT) but also alternative methods (CVD, solutiongrowth).

Such broad coverage of SiC substratetechnology provides Toyota with the ability in the mid- or long-term to liftmost technological barriers related to SiC materials in terms of cost, qualityor size of the wafers.

Toyota's stand-out IP collaborations

For instance, the collaboration withKwansei Gakuin University provides a very innovative approach to alleviate theshortage of high-quality, large-area, low-cost SiC wafers. Toyota and KwanseiGakuin University co-filed more than 15 related patents since 2019.

Other examples include the collaborationwith University of Illinois to develop an inverse opal structure (MIO) whichprovides a compact bond layer in power electronics assemblies. Another notablecollaboration took place with Virginia Tech in the field of SiC circuits in thelate 2010s.

Toyota's EV activities, driving multiple innovations in powerelectronics

The patent analysis reviews thedevelopment of power card resin-molded packages with a double-sided cooling(DSC) structure for 2-in-1 power modules to be used in EV, emphasizinginnovative approaches for electrical interconnections and their encapsulationin resins. Interestingly, Toyota Motor has been pioneering the TLP bondingtechnique for die-attach technology since 2010, which represents a promisingalternative to conventional solder techniques and silver or copper sinteringtechniques for high-temperature operation.

The global IP strategy, as reflected by Toyota's SiC patentportfolio

According to our analysis, Toyota hasbuilt a consolidated IP position in the US and Japan, and now the group isextending its patenting activity to other strategic markets for SiC technology,such as Europe and China.

In conclusion, the analysis of its patentportfolio positions Toyota as a leading innovator in power SiC. “The Japanesecorporation has designed an innovation strategy to build up strong expertiseinternally, all along the supply chain of power SiC technology, whilemaintaining access to multiple external innovation sources such as collaborations,development and production partnerships,” concludes Dr Rémi Comyn,PhD, Technology and Patent Analyst Power Electronics & CompoundSemiconductors at KnowMade. This innovation strategy aims to provide Toyotawith one of the most competitive SiC technologies for EV applications, and iscombined with a global IP strategy which will certainly support the developmentof its business related to BEV, HEV and FCEV internationally.

Autonomous vehicles, a singular approach

Key points about Toyota and ADAS detailedin our article: Toyota Group, a leading IP player in thedevelopment of sensors and autonomous vehicles technologies

Autonomous vehicles (AV) and robot taxisare the second revolution that the automotive industry is preparing. However,while electrification is already well implanted with the release of HEV andBEV, the launch of robot taxis and fully autonomous vehicles is taking a littlemore time.

Toyota enters the competition with a strong legacy in developingsensor technologies…

Toyota's current investments to develop AVcould be linked to the group's recent patenting activity. With a CAGR of +16%between 2011 and 2020, more than 900 new inventions published in 2020, the IPactivity of Toyota Group related to advanced driver assistance systems (ADAS) andAV technology is among the most dynamic IP domains of the group. Such anincrease in R&D activity is necessary to be able to compete against otherautomakers like Volkswagen, Audi, Mercedes and Ford, but also against the robottaxi-making newcomers, especially in the US (Waymo, Uber, Zoox, etc.).Furthermore, strengthening and enlarging its IP portfolio allows Toyota tosecure its products and offers the group a set of tools to fight against itscompetitors, who have also enlarged their patent portfolios hugely.

… but a singular development strategy focused on cameras…

Today, Toyota's developments benefit fromToyota Group's early patenting activity related to cameras, radars and lidars,which are considered the three main technologies that need to be combined toachieve 3D mapping of the vehicle environment. Indeed, Toyota appears to be apioneer and leader in the development of ADAS and AV. However, while most ofits competitors are fiercely investing and enlarging their portfolios relatedto lidar technology, the Japanese corporation has chosen to reduce its lidarR&D activity, as shown by the patenting activity slow-down. Today, Toyota'sefforts are targeting solutions to integrate and control multiple sensors andespecially cameras in a vehicle. The company IP position is becoming strongerfurther down the supply chain, ensuring its position as an integrator andoperating system provider. On the upper part of the supply chain, Toyota Groupbenefits from its past IP activity. Once again, Toyota's patenting activityshows a will to control and protect all key links of the supply chain.

… to enable reliable and cost-effective AV that leverage theadvances in computing systems.

By developing computing solutions andrelated IP, Toyota is progressively strengthening its IP position down thesupply chain and controlling its inventions from the sensor devices to theirintegration and use in a vehicle. This vertical integration is in goodalignment with Toyota's strategy in the EV market. Furthermore, computing is thekey that could unlock the full potential of the AV system. This is especiallythe case when using cameras. To do so, computing systems must manage a highvolume and variety of data rapidly, efficiently and without errors to allowquick and safe decision making by the vehicle. All these developments willcontribute to the release of the flagship Crown model that will include anautomated driving system with hands-free capability on the highway. Accordingto Nikkei's newspaper, Toyota aims to provide an autonomous driving system by2025.

Conclusion

Toyota's patenting activity reflects thecompany's will to be a major player in the development of tomorrow's vehicles.To avoid its past mistakes, Toyota Group has adopted a vertical innovation IPstrategy. In all major fields (e.g., battery, fuel cells, sensors, powerelectronics), Toyota has filed a significant number of patents to covereverything from materials to systems, including devices, control circuits andpackaging. What's more, Toyota has also enlarged its technological coverage toemerge as an IP leader in past, present and future key technologies. Such an IPstrategy is not unique, but Toyota has successfully secured and strengthened aportfolio with valuable and enforceable patents. Furthermore, Toyota's recenthigh patenting activity and strong IP position offer a solid base to build itsmarket position in the emerging markets that are EV and AV. Moreover, itensures the company is able to assert its inventions and defend its positionall around the world for years to come.

Related KnowMade reports:

· Battery patentanalysis

· Fuel cell patentanalysis (coming soon)

· Power electronicspatent analysis

· MEMS, Sensing &Imaging patent analysis