Toyota to Invest $3.4 Billion Through 2030 in Electric Vehicle Battery Production in the U.S.
Japan's Toyota Motor Corp is making a $3.4 billion investment to produce electric vehicle batteries in the U.S., the automaker announced on Monday.
The massive investment is for developing and localizing automotive battery production to meet the demand for Toyota's future electric vehicles. The investment is part of the $13.5 billion the automaker set aside for investment in battery development and production announced last month by Toyota.
As part of the plans, Toyota Motor North America announced that it will establish a new company and build an automotive battery plant together with Toyota Tsusho in the U.S. The factory will create roughly 1,750 new American jobs.
Toyota aims to begin battery production in 2025.
The project also includes an investment of approximately $1.29 billion until 2031, including funds that will be used to develop land and build facilities.
"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."
The investment in battery production will help Toyota develop and expand its local supply chain and production knowledge in Lithium-ion automotive batteries.
The venture will first focus on producing batteries for hybrid electric vehicles. Further details of the project, including details on location, production capacity, business structure, etc. will be shared at a future time, Toyota said.
Toyota will join General Motors, Ford Motor Co with its big investment to produce EV batteries locally for its U.S. models.
General Motors is investing up to $4.6 billion in two U.S. battery factories with its joint venture partner LG Energy Solutions. Ultium Cells LLC, the joint venture of LG Energy Solution and the automaker, announced in April a $2.3 billion plus investment to build a second EV battery cell manufacturing plant in Tennessee. GM's other battery plant is in Ohio near the automaker's former Lordstown assembly factory. The total investments in the two factories is $4.6 billion.
In May, Ford and South Korea-based SK Innovation announced plans to create a joint venture EV battery company called "BlueOvalSK" to produce approximately 60 GWh annually in battery cells and array modules. Battery production is scheduled to begin by mid-decade, with potential to expand as Ford introduces new electric models. Ford said that approximately 140 gigawatt hours (GWh) of battery production will be required in North America for its future EVs.
Toyota expects that sales of electrified vehicles will be 70% of its model lineup in the U.S. by 2030. That's up from the 25% it is today. To meet the demand, the company will expand its lineup 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.
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