Toyota Motor Corporation has announced that it will invest approximately $3.4 billion in automotive batteries in the U.S. The investment is specifically for developing and localising automotive battery production, including those for battery electric vehicles, and is part of the global total of approximately $13.5 billion set aside for investment in battery development and production, previously announced by Toyota.
Toyota Motor North America has also announced that it will establish a new company and build an automotive battery plant together with Toyota Tsusho in the U.S.
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.
Ted Ogawa, Chief Executive Officer, Toyota Motor North America, says: “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.”
Toyota directly employs more than 36,000 workers in the U.S.
The company has contributed design, engineering, and assembly of more than 30 million cars and trucks at its nine U.S. manufacturing plants, ten including its joint venture in Alabama that began production in September, 2021.