Toyota Invests $3.4 Billion in US EV Battery Production

Toyota Invests $3.4 Billion in U.S. Battery Production

Toyota Motor is significantly increasing its commitment to vehicle electrification. The company announced Monday a $3.4 billion investment in battery development and manufacturing within the United States, extending through the end of the decade.

New Battery Plant and Investment Details

This substantial investment will be channeled through Toyota’s North American operations. A key component is the establishment of a new $1.3 billion electric vehicle battery plant. This facility will be developed in collaboration with Toyota Tsusho, the company’s metals division.

Production at the new plant is projected to commence in 2025. Expansion is planned to continue through 2031, ultimately creating approximately 1,750 jobs. The specific location for this facility remains undisclosed at this time.

Global Electrification Strategy

These initiatives form part of Toyota’s broader $13.5 billion global investment strategy. This aims to maintain pace with other automotive manufacturers who are dedicating significant resources to battery technology and vehicle electrification.

Several major auto manufacturers, including General Motors, have already announced comparable, and in some cases larger, investments. GM intends to allocate $35 billion by 2025 to launch 30 new electric vehicles and expand its electric model assembly capabilities.

Initial Production Focus and Capacity

Initially, the new facility will focus on producing batteries specifically for hybrid vehicles, according to Toyota. The anticipated production capacity of the plant has not yet been revealed.

Industry-Wide Trend and In-House Production

Toyota’s plans align with recent announcements from companies like Ford. Ford, alongside its partner SK Innovation, will invest $11.4 billion in two U.S. manufacturing sites dedicated to EV battery production.

Stellantis, formed from the merger of Fiat Chrysler and Groupe PSA, also announced Monday its intention to manufacture battery cells and modules in North America, through a preliminary agreement with LG Energy Solutions.

However, Toyota’s announcement is noteworthy as it emphasizes a strategy of entirely in-house battery production.

Toyota’s EV Transition

Compared to some competitors, Toyota’s entry into the fully electric vehicle market has been relatively gradual. Currently, the company does not offer any all-electric (BEV) models in the U.S.

However, Toyota does currently market several plug-in hybrid and hybrid vehicles. The company previously announced plans to introduce its first BEV to North American markets – the bZ4X crossover – in the coming year.

Toyota’s goal is to expand its EV lineup to encompass 15 models globally by 2025.