Toyota is building the second-generation Toyota RAV4 EV. 

In 2011, 35 vehicles will be built for a demonstration program. 

Then expect the RAV4 EV to be in showrooms in 2012. 

The cool thing is that this version is expected to have a range of 100 miles.  Given Toyota’s track record on the last RAV4 EV which I did drive; when they say a range they mean it. 

“When we decided to work together on the RAV4 EV, President Akio Toyoda wanted to adopt a new development model that incorporated Tesla’s streamlined, quick-action approach,” said Jim Lentz, president and chief operating officer, TMS. “The result was a hybrid – a new decision and approval process and a development style that our engineers refer to as “fast and flexible.” 

Source: Toyota Motor Corporation
Tesla and Toyota Working Together to Make It Happen

Tesla Motors was responsible for building and supplying the battery, as well as other related parts, that met specific Toyota engineering specifications in performance, quality and durability.  Toyota was responsible for development and manufacturing leadership and the seamless integration of the powertrain.
“From the beginning, the customer experience has been the focus,” said Lentz. “In other words, how do we deliver an unconventional product to mainstream customers that is compelling and affordable and that offers an acceptable level of daily convenience.”
This added weight factor required significant retuning of major components and a prioritized focus on weight distribution.  Not only were suspension and steering modified significantly, major components needed to be relocated to better balance the increased mass of the battery pack. 
The demonstration vehicle Toyota is powered by a lithium metal oxide battery with useable output rated in the mid-30 kwh range. However, many decisions regarding both the product, as well as the business model, have not been finalized.
As for a final assembly location, Toyota is considering many options and combinations.  The basic vehicle will continue to be built at its Canadian production facility in Woodstock, Ontario.  Tesla will build the battery and related parts and components at its new facility in Palo Alto, Calif.  The method and installation location of the Tesla components into the vehicle is being discussed. 
Tesla Batteries Toyota CarIn 1997, Toyota brought to market the first-generation RAV4 EV in response to the California zero emission vehicle (ZEV) mandate and was the first manufacturer to meet the mandate’s Memo of Agreement on volume sales.  Powered by a nickel-metal hydride battery pack, the vehicle had a range of between 80-110 miles on a single charge.  From model year 1998 to model year 2003, only 1,484 vehicles were sold or leased in the U.S.  746 first-generation RAV4 EVs are still on the road (
“Price and convenience proved to be critical success factors and they remain so today,” said Lentz.  “But much has changed in the last few years.  Most importantly, the growing level of awareness that sustainable mobility will come at a cost that must be shared by the automakers, government and the consumer.
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