Tesla Motors today said that it has signed an agreement worth $100 million to supply electric power train equipment to Toyota.
In a regulatory filing, Tesla said that it will supply the battery, charging system, inverter, motor, and related software to power Toyota's planned electric version of its RAV4. Toyota plans to sell the small SUV to both consumer and residential customers next year.
Toyota took a $50 million stake in Tesla last year and signed an agreement to use Tesla's electric power train in the electric RAV4. In Tesla's filing, it said production of the electric RAV4 will begin next year and go until 2014.
For Tesla, the supply arrangement is an important source of revenue as the electric-car company transitions from sales of the Roadster sports car to the Model S, a sedan it plans to start shipping in mid-2012. The $100 million supply agreement finalizes the previous deal between the two companies.
Toyota's plan to bring an electric RAV4 is seen as a vote of confidence in all-electric vehicles, rather than hybrids such as the successful Prius. Next year, Toyota also plans to release an all-electric version of the Scion iQ city car.