Subaru joins Toyota and Honda as the latest major Japanese automaker that plans to delay key EV projects to focus on hybrids.
Subaru shifts EV plans to focus on hybrids and ICE
Japanese automakers have been among the slowest to join the global shift to electric cars, insisting on focusing on hybrids and internal combustion engine (ICE) models.
After reporting its second-quarter earnings this week, Subaru said it’s adjusting its planned 1.5 trillion yen ($9.7 billion) investment dedicated to EVs.
Instead, Subaru is dedicating some of the funds initially planned for EVs to developing new hybrid and ICE vehicles.
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“Given the increasing demand for hybrids and the reappraisal of internal combustion engines, it is appropriate to delay the timing of full-scale EV mass production investment,” Subaru’s president, Atusushi Osaki, said during the company’s Q2 earnings briefing earlier this week (via Nikkei).
2026 Subaru Uncharted EV (Source: Subaru)
Subaru has already invested 300 billion yen ($1.9 billion) of the planned funding. The remaining 1.2 trillion yen ($7.8 billion) is under review.
The company plans to increase spending on hybrid and ICE vehicles, and potentially on new vehicle types. Despite the shake-up, Subaru’s plans to launch four new electric SUVs through its partnership with Toyota remain on track for launch by the end of 2026.
2026 Subaru Solterra EV (Source: Subaru)
After launching the new Forester in Japan earlier this year, powered by Toyota’s hybrid tech and its in-house engine design, Subaru said it’s seeing strong demand for hybrids.
Subaru’s profit took a 154.4 billion yen ($1 billion) hit from the Trump Administration’s new auto tariffs. In response to the changes, Subaru is taking countermeasures to cut costs by 200 billion yen ($1.3 billion) by 2030.
2026 Subaru E-Outback (Trailseeker) electric SUV (Source: Subaru)
Subaru joins Toyota and Honda as the latest Japanese automaker to postpone EV plans. Toyota announced last week it’s delaying plans to build a new EV battery plant in Japan for the second time. The plant is scheduled to begin producing Toyota’s next-gen batteries in 2028.
Electrek’s Take
Despite media headlines pushing that EV sales are “cooling” or “slowing,” drivers are still switching to electric. According to market research firm Rho Motion, global EV sales rose to 1.9 million last month, up 8% from October 2024.
In the first 10 months of 2025, EV sales growth reached 23%, with notable increases in Europe (+32%), China (+22%), North America (+4%), and the rest of the world (+48%).
By pushing back or canceling plans altogether, automakers are betting against the inevitable. Although Ford has canceled or delayed several major electric vehicle initiatives, CEO Jim Farley admitted during a new episode of the Office Hours: Business Edition podcast that the company “can’t walk away from EVs.”
Not just in the US, Farley warned, “if we want to be a global company, I’m not going to just cede that to the Chinese.”
Farley has warned several times now that Chinese EV makers pose an “existential threat” to global automakers, including itself. For this reason, Ford is betting on smaller, more affordable models to stay competitive.
Are automakers just looking for an excuse to cut costs and please investors? Either way, they will only fall further behind China and others racing to advance new EV tech.
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Burlingame, California-based Peak Energy just scored a huge win for sodium-ion batteries. The company announced a multi-year deal with utility-scale battery storage developer Jupiter Power to supply up to 4.75 GWh of sodium-ion battery systems between 2027 and 2030.
Under the agreement, Peak will deliver 720 MWh of storage in 2027 – the largest single sodium-ion battery deployment announced so far. The deal also includes an option for an additional 4 GWh of capacity through 2030, bringing the total contract value to more than $500 million.
Sodium-ion vs. lithium-ion
Peak Energy says its sodium-ion batteries degrade less over time and have lower operations and maintenance costs than lithium-ion systems. Because the batteries don’t degrade as quickly, operators don’t need to add more capacity later in a project’s life to maintain performance. They also use a fully passive cooling system that eliminates pumps, fans, and other components used in lithium-ion setups, reducing maintenance and safety risks.
The company claims its grid-scale sodium-ion system uses up to 97% less auxiliary power, offers about 30% better cell degradation performance over 20 years, and comes with a lower total cost of ownership.
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Why this deal matters
The agreement marks a significant step forward for the emerging sodium-ion sector, which has been gaining momentum as a safer and lower-cost alternative to lithium-ion for long-duration and grid-scale energy storage. It also underscores the growing effort to build a domestic sodium-ion battery supply chain in the US.
“From day one, we’ve believed sodium-ion will be the winning technology for grid-scale storage, which is essential to meet rising demand from hyperscalers and AI,” said Landon Mossburg, Peak Energy’s CEO and cofounder. “Deploying the world’s largest sodium-ion energy storage system with one of the nation’s top independent power producers proves that sodium is ready for today and will dominate the future.”
Mike Geier, CTO at Jupiter Power, said the company is “excited to support domestic battery energy storage manufacturing as we continue to increase the deployment of firm, dispatchable energy when and where it’s most needed,” and called Peak’s approach to sodium-ion “a potential game changer for the industry.”
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Lexus claims the new ES “takes sedan styling, luxury, and refinement to a higher level” with a complete redesign. With the 2026 ES arriving soon, Lexus offered a closer look at the upgrades inside and out.
The new 2026 Lexus ES debuts in EV and hybrid forms
The eighth-gen ES is bringing more than a sharp new style. Lexus overhauled its flagship sedan from the ground up for the 2026 model year, which will include battery electric (BEV) and hybrid (HEV) powertrain options.
Inspired by the radical LF-ZC show car, the 2026 ES has been fully redesigned with what Lexus calls the “Experience Elegance and Electrified Sedan” concept, aimed at further refining the driving experience.
The new design centers on a redesigned “spindle body” that extends from the hood to the bumper. It also features a redesigned grille, replacing the signature Lexus spindle grille as the brand looks for a new identity in the electric era.
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Inside, the new 2026 ES features the latest version of the Lexus Interface multimedia system. The setup includes a 14″ touchscreen with wireless Apple CarPlay and Android Auto, and a 12.3″ driver display cluster.
The 2026 Lexus ES 350e (Source: Lexus)
Based on the redesigned TNGA GA-K platform, the new ES will be available in battery electric (BEV) and hybrid (HEV) powertrains for the first time.
The 2026 Lexus ES lineup consists of two models: the ES 350e, a front-wheel-drive (FWD) model, and the ES 500e, an all-wheel-drive (AWD) model.
The 2026 Lexus ES 350e interior (Source: Lexus)
Lexus expects the ES 350e to have a driving range of 300 miles when fitted with 19″ wheels, while the ES 500e has an estimated driving range of 250 miles.
Both the ES 350e and 500e feature a built-in NACS port to recharge at Tesla Superchargers. Using DC fast charging, it can recharge from 10% to 80% in about 30 minutes under “ideal conditions,” according to Lexus.
With its debut just around the corner, Lexus offered a closer look at the new 2026 ES inside and out in a new video.
Lexus has yet to announce prices, but the redesigned ES is expected to start at about $45,000 to $50,000, or slightly more than the outgoing model.
After launching the upgraded RZ earlier this month, Lexus said the ES would be next. It’s expected to go on sale in Spring 2026.
What do you think of the redesigned 2026 ES? Do you like the new Lexus design? Let us know your thoughts in the comments below.
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Tesla has launched a new version of the Model Y in China, and it’s achieving an impressive new range rating – thanks to a new battery cell from South Korea’s LG.
The new variant, a five-seat, rear-wheel drive long-range model, has been released with an 821-km range based on China’s CLTC standard.
While the CLTC rating is known to be optimistic, 821 km (about 510 miles) is an impressive number and the longest range Tesla has offered in its Model Y lineup to date, which is going to help it be more competitive in the Chinese market.
The new long-range RWD Model Y starts at RMB 288,500, which translates to just over $40,500 USD.
The launch comes at a critical time for Tesla in China, which has seen its sales slump in recent months. The automaker recorded its lowest monthly sales in October since November 2022, falling out of the top 10 list for new energy vehicle (NEV) sales.
That’s despite a continued surge in electric vehicle sales in China. Tesla is not benefiting from it amid strong competition.
According to local Chinese media reports, the new 821-km Model Y is already gaining traction with some anecdotal reports of enthusiasm at Tesla stores.
The reports are partly supported by Tesla quickly extending delivery timelines from 2-4 weeks to 4-6 weeks just hours after launch.
Electrek’s Take
I think this is going to be suitable for a decent short-term bump in demand, but it’s still on the expensive side for the Chinese market.
For example, now the Model Y beats the Xpeng G6’s max range of 755 km, but the G6 with this range costs 234,900 RMB (approximately $32,900 USD), which is significantly cheaper.
Every 10,000 RMB tranche lower means a lot more demand in China.
Tesla needs to launch its new “standard” versions to start making a difference with demand long term in China.
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