The company’s North American unit will establish a new entity for jointly constructing an automotive battery manufacturing plant in the US with Toyota Tsusho with an investment of $1.29bn
Toyota Motor to build a $1.29bn automotive battery plant in the US. (Credit: TOYOTA MOTOR CORPORATION)
Japanese auto manufacturer Toyota Motor said that it will invest around JPY380bn ($3.4bn) in the US through 2030 in automotive batteries.
According to the company, the investment will be specifically directed towards developing and localising the production of the batteries, which include those used in electric vehicles.
It is part of the recently announced investment of around JPY1.5 trillion ($13.5bn) by the company. It will be used towards global battery development and production to help the company achieve carbon neutrality.
The company said that in order to drive localisation of battery production, its North American unit will set up a new company for jointly constructing an automotive battery manufacturing plant in the US with Toyota Tsusho.
The plant is targeted to begin production in 2025. It is expected to see an investment of around $1.29bn until 2031.
The investment will be used for developing land and build facilities while generating 1,750 new jobs.
Toyota Motor North America CEO Ted Ogawa 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 U.S. consumers, significantly reduce carbon emissions, and importantly, create even more American jobs tied to the future of mobility.”
The new company is expected to help Toyota Motor further develop and broaden its local supply chain and production expertise pertaining to lithium-ion automotive batteries.
It will initially focus on the production of batteries for hybrid electric vehicles.
Toyota Motor said that more details of the project, including information about its location, business structure, and production capacity will be released at a later date.
The Japanese automaker expects to sell two million zero-emission vehicles globally by 2030. These include battery electric vehicles (BEVs) and fuel cell electric vehicles (FCEVs).
In the US, the company is aiming to sell 1.5-1.8 million electrified vehicles, including zero-emission vehicle models.
Toyota Motor said that electrified vehicles currently constitute almost 25% of its US sales volume, which is likely to move up to around 70% by the end of this decade.