Automotive giant Toyota announced today plans to invest $3.4 billion dedicated to building its EV battery capacity in the U.S between now and 2030. The plans form part of the company’s $13.5 billion strategy to develop localized EV battery production, and adds more capital to the U.S.’s rapidly growing vehicle electrification ecosystem.
Along with the announcement, the company revealed that Toyota Motor North America and trading and supply chain group Toyota Tsusho will establish a company, with plans to build a battery plant aimed at starting production in 2025. Anticipated investment in the plant is approximately $1.3 billion through 2031. The venture aims to further develop and expand its local supply chain and production knowledge related to Lithium-ion automotive batteries.
Toyota stated that it aims to sell between 1.5 million to 1.8 million electrified vehicles – including zero emission vehicles (ZEVs) – in the U.S. by 2030.
Ted Ogawa, Chief Executive Officer, Toyota Motor North America, said:
“Toyota’s commitment to electrification is about achieving long-term sustainability for the environment, American jobs and consumers. 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.”
The announced investment comes as the U.S. appears poised for a major shift from internal combustion powered to electric-powered vehicles. Earlier this year, President Biden signed an executive order setting a new target for zero emissions vehicles – including battery electric, plug-in hybrid electric, and fuel cell electric – to make up half of new vehicle sales in the U.S. by 2030. Automotive OEMs have been making massive capital commitments to develop the EV market and battery ecosystem, including Ford last month announcing plans to invest billions in new EV and battery plants, and GM planning to invest $35 billion in its EV and AV businesses through 2025.