Toyota has announced that it will invest $3.4 billion over 10 years in the United States as part of its $13.5 billion pledged for battery development and production worldwide.
The allocation is specifically intended for developing and localising automotive battery production, including EVs.
Toyota Motor North America announced its intent to establish a new company with Toyota Tsusho to build an automotive battery plant in the US that is hoped will start production in 2025. The project includes investment of $1.29 billion until 2031, including funds to develop land and build facilities.
Ted Ogawa, CEO of Toyota North America, said: “This investment will help usher in more affordable electrified vehicles for US consumers, significantly reduce carbon emissions and, importantly, create even more American jobs tied to the future of mobility”.
Part of the activities of the new company will be to assist Toyota in developing and expanding its local supply chain and production knowledge regarding lithium batteries. The first focus will be on producing batteries for hybrid electric vehicles.
Worldwide, Toyota’s sales of EVs have topped 18.7 million, including 4.5 million in the US, currently accounting for nearly 25% of sales. The firm expects that percentage to rise to 70% by 2030.
To meet demand, Toyota is expanding its list of EVs from 55 to about 70 models by 2025. They include hybrid (HEV), plug-in hybrid (PHEV), fuel cell (FCEV) and battery electric vehicles (BEV).