Toyota will invest approximately $3.4 billion (¥380 billion) in automotive batteries in the United States through 2030. Specifically, the investment is for developing and localizing automotive battery production, including those for battery electric vehicles, and is part of the global total of approximately $13.5 billion (¥1.5 trillion) set aside for investment in battery development and production announced last month by Toyota Motor Corporation.
To drive battery production localization, Toyota Motor North America also will establish a new company and build an automotive battery plant together with Toyota Tsusho in the US. Aiming to start production in 2025, the project includes an investment of approximately $1.29 billion until 2031, which includes funds that will be used to develop land and build facilities, resulting in the creation of 1,750 new American jobs.
Part of the new company’s activities will include helping Toyota to further develop and expand its local supply chain and production knowledge related to Lithium-ion automotive batteries.
The venture will first focus on producing batteries for hybrid electric vehicles. Additionally, the move is expected to help further the company’s goals to create a net positive impact on the planet and society, including advancing its efforts towards carbon neutrality in a sustainable and practical way.
Toyota said it will share further details of the project, including details on a site, production capacity, business structure, etc. in the future.
Cumulatively, Toyota has sold more than 18.7 million electrified vehicles, including more than 4.5 million in the US. While electrified vehicles already account for nearly 25% of Toyota’s US sales volume, the company expects that number to rise to nearly 70% by 2030.
To meet the growing demand, Toyota continues to steadily expand its lineup of electrified vehicles, including hybrid (HEV), plug-in hybrid (PHEV), fuel cell (FCEV) and battery electric vehicles (BEV), from 55 models today to about 70 models by 2025.
Of the 70 models, 15 will be BEVs, including seven Toyota bZ (Beyond Zero) models.
By 2030, Toyota expects to sell two million zero emission vehicles (BEVs and FCEVs) globally, and in the U.S, the company expects to sell between 1.5 million to 1.8 million electrified vehicles, including ZEV models.