Toyota Invests $3.4 Billion in U.S. Battery Production
Toyota announced it will invest approximately $3.4 billion in U.S.-based automotive battery production through 2030. This is part of the $13.5 billion that the automaker disclosed last month would put forward toward solid-state battery development.
Part of this investment will involve establishing a new company and building a new automotive plant in the U.S., in collaboration with Toyota Tsusho. About $1.29 billion will go toward this project until 2031, which will lead to the creation of 1,750 American jobs. The automaker anticipates production will begin in 2025.
Electrified: Discover Toyota’s hybrid, plug-in hybrid, and other electrified vehicles
“Toyota’s commitment to electrification is about achieving long-term sustainability for the environment, American jobs, and consumers,” said Ted Ogawa, the CEO of Toyota Motor North America. “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.”
Despite being the industry leader in hybrid and hydrogen fuel cell technology, Toyota has been criticized for its reluctance to throw itself at battery-electric vehicles. This investment shows that, while perhaps late, the automaker is ready to make the push into BEVs.
Electrified vehicle sales currently make up about a quarter of Toyota’s total U.S. sales volume, which is expects to rise to 70 percent by 2030. By 2025, the company plans to build about 70 electrified models, though only 15 of these will be fully electric.
Solid-state batteries are key to Toyota’s zero-emission plans as they could, in theory, significantly improve battery efficiency and recharge times. Additionally, the automaker is continuing to invest in traditional lithium-ion batteries, including its U.S. supply chain.
Kurt Verlin was born in France and lives in the United States. Throughout his life he was always told French was the language of romance, but it was English he fell in love with. He likes cats, music, cars, 30 Rock, Formula 1, and pretending to be a race car driver in simulators; but most of all, he just likes to write about it all. See more articles by Kurt.