Through the next decade, Toyota Motor Corporation will invest approximately $ 3.4 billion in the United States to develop and localise automotive battery production, including those for battery electric vehicles. This investment is part of the global total of approximately $ 13.5 billion the company had set aside for investment in battery development and production, as was announced last month by TMC.
To drive battery production localisation, Toyota Motor North America has announced it will establish a new company and build an automotive battery plant together with Toyota Tsusho in the US. 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. Production is expected to start in 2025.
A release issued by the company said 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 initial focus of the new venture is on producing batteries for hybrid electric vehicles.
Through this investment, the company expects to further its 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.
Further details of the project, including details on a site, production capacity, business structure, etc. will be shared at a future time, TMC noted.
Strong EV Commitment
It must be noted that cumulatively, Toyota has sold more than 18.7 million electrified vehicles, including over 4.5 million in the US. Currently, electrified vehicles account for nearly 25% of Toyota's US sales, and that number is expected to rise to nearly 70% by 2030.
To meet the growing demand, Toyota continues to steadily expand its line-up 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 US alone, the company expects to sell between 1.5-1.8 million EVs, including ZEV models.
Ted Ogawa, Chief Executive Officer, Toyota Motor North America said, “Toyota's commitment to electrification is about achieving long-term sustainability for the environment, American jobs and consumers. This investment will help usher in more affordable electrified vehicles for US consumers, significantly reduce carbon emissions, and importantly, create even more American jobs tied to the future of mobility.”