Toyota is changing course on one of its upcoming electric vehicle (EV) projects that was expected to debut the company’s long promised solid-state battery technology.
According to The Japan Times, Toyota has decided to end development of a production version of the Lexus LF-ZC, a next-generation electric sedan that had been scheduled to enter production in 2027. Instead, the Japanese automaker will shift more attention and resources toward SUVs and hybrid vehicles, mirroring the decisions of several other automakers.
The LF-ZC was first revealed as a concept at the Japan Mobility Show in 2023 and was positioned as a showcase for Toyota’s future EV technology. The sleek luxury sedan was expected to debut several major advancements, including all-solid-state battery technology, ultra-fast charging, and a targeted driving range of approximately 1,000 kilometres (621 miles) on a single charge.
SUV demand outweighs sedan ambitions
Toyota specifically cited strong SUV demand as a key reason for reallocating resources away from the LF-ZC program. SUVs remain the company’s strongest-performing segment globally, while electric sedans have struggled to gain the same level of mainstream traction outside of a few standout models.
Despite the cancellation, Toyota’s EV sales still increased significantly in 2025. The automaker reportedly sold roughly 200,000 battery electric vehicles (BEVs) globally last year, representing growth of more than 40% year-over-year. Much of that growth was driven by models like the bZ4X crossover, which has seen sales surge further in 2026 with the launch of a refreshed model.
However, Toyota says it will continue to lean heavily on its “multi-pathway” strategy, offering customers a mix of gasoline, hybrid, plug-in hybrid, hydrogen fuel cell, and fully electric vehicles rather than committing entirely to battery EVs.
Solid-state battery plans remain alive
Although the LF-ZC itself may never reach production, Toyota says development of next-generation EV technologies will continue.
That includes ongoing work on solid-state batteries, which many automakers see as the next major breakthrough for EVs due to their potential for faster charging, longer range, and improved durability compared to current lithium-ion battery packs.
Toyota also plans to continue investing in gigacasting technology, a manufacturing process popularized by Tesla that uses massive casting machines to create large vehicle sections from a single aluminum piece. The process can simplify manufacturing, reduce production costs, and improve efficiency.
The company acknowledged the rapidly changing automotive landscape in a statement, saying, “We will respond swiftly to changes in the times and customer needs while striving to build cars that exceed customer expectations.”
Toyota is not alone in reassessing its EV roadmap. Other Japanese automakers, including Honda, have also recently adjusted long-term electrification targets as the industry navigates shifting market conditions and uncertain consumer demand.
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