Toyota Motor Corporation has recently announced its plans for an additional investment of $2.1 billion in an automotive battery plant set to commence operations in North Carolina, USA, by 2025. This investment will be allocated towards infrastructure development and expanding the factory.

Furthermore, Toyota revealed that their upcoming production base for electric vehicles (EVs) will be located in Kentucky. This decision comes as the United States has bolstered its subsidy system for EVs and automotive batteries manufactured and sourced in North America, prompting Toyota to take appropriate measures.

In November 2021, Toyota established an automotive battery production company, with its North American subsidiary holding a 90% investment and Toyota Tsusho contributing the remaining 10%. This company will be responsible for manufacturing batteries for both hybrid vehicles (HVs) and EVs, with construction of the plant currently underway. With this additional investment, the total investment is expected to reach $5.9 billion. However, the amount of the additional investment is not included in Toyota’s previously planned EV-related investment of ¥5 trillion by 2030.

Toyota’s EV battery plant under construction in North Carolina, USA

Additionally, Toyota has announced that the first EV to go into production in the United States starting in 2025 will be a three-row sports utility vehicle (SUV), utilizing batteries produced at the currently under-construction battery plant. The production volume will be determined based on market demand.

In the United States, the recently enacted Appropriations and Revenue Act (Inflation Control Act) provides tax credits of up to $7,500 for EV buyers. However, these tax credits are applicable only to vehicles assembled in North America, with 50% of vehicle batteries requiring manufacturing and assembly in the region. This policy aims to stimulate domestic production.

Toyota has set a target to sell 1.5 million EVs worldwide by 2026. With the US market experiencing rapid growth, expanding EV sales has become a crucial objective for the company. Toyota intends to strengthen its efforts in both vehicle and battery production to meet this demand.