Toyota is the latest company to announce a significant investment in electrifying its vehicles. The project, worth $3.4 billion, will fund battery production in the United States through 2030. The budget is a part of a larger $13.5 billion investment earmarked for battery development and production worldwide.
As a part of this project, Toyota Motor North America will form a new company with Toyota Tsusho in the United States. The new venture’s $1.5 billion automotive battery plant aims to start production in 2025, with 1,750 new domestic jobs projected.
According to Ted Ogawa, CEO of Toyota Motor North America, the new plant will benefit consumers and workers alike. “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,” Ogawa said.
At its onset, the new factory will initially focus on producing batteries for hybrid-electric vehicles. Toyota says that additional details are forthcoming.
The news comes as other major automakers announce significant battery manufacturing projects. Ford will spend $11.4 billion on two plants in cooperation with its battery partner SK Innovation. General Motors plans to build a new electric vehicle (EV) battery facility to expand its sprawling battery technology operations further. Stellantis also announced a partnership with LG Energy Solutions and a $34.8 billion investment in vehicle electrification and software. In Europe, Volvo Cars is partnering with Swedish battery company Northvolt to operate a research and development center in Sweden. A European Gigafactory is expected in 2026.
Despite its early advancements in the hybrid vehicle space with the best-selling Prius, Toyota has been slow to release fully electric vehicles. By manufacturing its batteries domestically and in-house, Toyota’s EV production should be on solid footing in the United States, which it will need to reach its goal of selling up to 1.8 million electrified vehicles by 2030.