Toyota Announces $2.5 Billion Investment In US Battery Production

If you read interviews with Toyota executives from different markets, you will get mixed signals from companies regarding the electrification process of the auto industry. Some executives say there is a serious lack of consumer demand for EVs but others believe it’s time to embrace electric cars with open arms. What is perhaps most important, however, is that Toyota wants to increase battery production for its “increasing demand.”

The Japanese automaker has just announced a massive new investment in battery production totaling 730 billion yen to invest in Japan and the United States. This figure is equivalent to about $5.6 billion, about $2.5 billion of which will be invested in Toyota Battery Manufacturing in North Carolina. There is only one clear goal – increasing automotive battery production.

The investment is part of Toyota’s strategy to build a complete supply system for electric vehicle production. An important part of this system is the supply of automotive batteries from its partners and its own production plants. Ultimately, manufacturers want to reduce CO2 emissions as much and as quickly as possible in all regions and markets around the world. To achieve that, Toyota will offer several powertrain options tailored to the needs of local customers.

Thanks to the new investment, the combined battery production capacity in Japan and the United States will be increased to 40 GWh. As part of the investment, the company will build a production line that is more efficient than before and will educate personnel engaged in battery production. Actual battery production after this new investment is expected to begin between 2024 and 2026 and take advantage of the global Toyota Production System. Batteries manufactured in Japan and America will be exported to all markets where Toyota sells electric vehicles.

The bZ4x is currently Toyota’s only pure electric vehicle on sale. This will join the bZ3 which will likely remain a China-only product. A larger bZ5 electric sedan is also on the way and several battery-powered models will follow soon.

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