Toyota is developing and making electric vehicles and EV batteries in China, the Japanese automaker said Wednesday, under a new partnership with the Shanghai government.Toyota Motor Corp. also announced it will start producing batteries for EVs,

Profit increased for Japanese vehicle manufacturer Toyota in its third quarter compared to the same period of the previous year. Toyota reported that its net income attributable to the company for the third quarter increased to 2.

Toyota Motor will establish a wholly owned company in Shanghai to develop and produce electric vehicles and batteries for the Lexus brand, with production set to start in 2027, the world's top-selling automaker said on Wednesday.

Toyota's push also comes as worries grow around Asia about a potential trade war brewing after President Donald Trump imposed tariffs on Chinese goods and China retaliated with tariffs to take effect next week.