May 15, 2014 02:07 PM EDT
Toyota to Focus on Fuel Cell Vehicle When Tesla RAV4 EV Deal Expires

Toyota will focus on the market preparation for the debut of its hydrogen fuel-cell sedan as its Toyota RAV4 EV deal with Tesla Motors is set to expire later this year.

"We are also evaluating the RAV4 EV program and will have more to say at a later date," said Mike Michels, a Toyota spokesman, according to Edmunds.

Tesla Motors said in a regulatory filing recently that it expects the battery-supply deal for the RAV4 EV to end sometime later this year.

Back in 2011, Tesla agreed to supply Toyota with an electric powertrain system, including a battery pack, software, and charging system, for its Toyota RAV4 EV.

"Our contract called for Tesla to supply approximately 2,500 battery-electric powertrains - over approximately a three-year period, for the RAV4 EV," Michels said. "We anticipate that volume will be achieved this year. We have a good relationship with Tesla and will evaluate the feasibility of working together on future projects."

Michels said the decision to wind down the supply deal with the Model S maker "is not unexpected."

"Keep in mind also that the RAV4 EV is based on the previous generation that hasn't been in production for more than two years," Michels said.

The Toyota Fuel Cell Vehicle (FCV) Concept first debuted in the U.S. at the 2014 International Consumer Electronics Show.

The automaker has already promised the vehicle will be affordable when it reaches dealerships in 2015.

Toyota said the new FCV will be launched in California first before being issued in other locations.

"We offer a wide range of advanced technologies that reduce or eliminate emissions and suit customers' diverse needs," Michels said. "Our focus this year will be market preparation for the arrival in 2015 of our 300-mile range, zero-emission hydrogen fuel cell four-door sedan in California and the development of hydrogen refueling stations to support that technology."

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