Toyota will invest approximately $3.4 billion (380 billion yen) in automotive batteries for electric vehicles in the United States through 2030. According to Toyota, the $3.4 billion investment is for developing and localizing automotive battery production and is part of the automaker’s global $13.5 billion investment in battery development and production. By 2030, Toyota expects to sell two million zero-emission vehicles (BEVs and FCEVs) globally. In the U.S., the company expects to sell between 1.5 million to 1.8 million electrified cars, including ZEV models.
Toyota Motor North America will establish a new company and build an automotive battery plant with Toyota Tsusho in the U.S. According to Toyota, the project includes an investment of approximately $1.29 billion until 2031, although the goal is to start production in 2025. Those funds will be used to develop land and construct facilities. The move is expected to create 1,750 new jobs.
Further details of the project, including the site location, production capacity, and business operations, will be shared in the near future.
Toyota says it plans to continually expand its local supply chain and production knowledge related to lithium-ion automotive batteries. Toyota will first focus on producing batteries for hybrid electric vehicles, with the long-term goal of working towards carbon neutrality and sustainable manufacturing.
“Toyota’s commitment to electrification is about achieving long-term sustainability for the environment, American jobs, and consumers,” said Ted Ogawa, chief executive officer, Toyota Motor North America. “This investment will help usher in more affordable electrified vehicles for U.S. consumers, significantly reduce carbon emissions, and importantly, create even more American jobs tied to the future of mobility.”
As of this writing, Toyota has sold more than 18.7 million electrified vehicles, including over 4.5 million in the U.S. Earlier this year, Toyota unveiled the bZ4X BEV concept at Auto Shanghai 2021. The “bZ” stands for “Beyond Zero,” a reference to Toyota’s goal of achieving carbon neutrality by 2050.