Toyota adds another $10 billion to EV battery investment in the US
The Japanese group said it will invest more in the US over the next five years as it seeks to ramp up battery production for hybrid and electric vehicles.
The announcement came as Toyota, the world's largest automaker by output, opened its first overseas battery-only plant in North Carolina. Toyota aims to raise its cumulative investment in the US, a key market, to $60 billion.
Tetsuo Ogawa, chairman and CEO of a Toyota unit overseeing the North American region, said the plant and the new investment mark a historic milestone for the company and demonstrate its strong commitment to local communities, dealers and suppliers.
2025 Toyota Camry hybrid in the US. Photo: Bako Motors
Toyota has invested about $13.9 billion in the new North Carolina plant, which will produce lithium-ion batteries for hybrids, electric vehicles and plug-in hybrids. The automaker expects to hire up to 5,100 employees there.
The move comes after Washington imposed a 15% tariff on cars imported from Japan in September, down from the initial 27.5% set by President Donald Trump. However, that figure is still six times higher than the 2.5% rate applied before April.
Toyota first announced plans to produce batteries for hybrid and electric vehicle lines in December 2021. Batteries from the plant are expected to power hybrid versions of the Camry, Corolla Cross, RAV4 and an undisclosed three-row electric vehicle. The plant is already producing hybrid batteries for factories in Kentucky and for a Mazda-Toyota joint venture in Alabama.
Toyota's 11th US plant, located on a 749-hectare site, will be able to produce 30 GWh a year at full capacity and will have 14 battery production lines for plug-in hybrid and electric vehicles.
Toyota has been one of the slowest automakers to shift to electric vehicles, but it has moved quickly to convert its best-selling models to hybrids.
My Anh (according to Japan Today, Reuters)
