Toyota to Invest $3.4 Billion in Batteries, Start New Company

Toyota has plans to invest approximately $3.4 billion in automotive batteries in the United States through 2030.

An Oct. 18 announcement says the investment will develop and localize battery production, including those for battery electric vehicles, and is part of a global total of approximately $13.5 billion for battery development and production by Toyota Motor Corporation.

Toyota Motor North America also announced a plan to establish a new company and build an automotive battery plant together with Toyota Tsusho in the U.S. Production is planned to start in 2025 and includes an investment of approximately $1.29 billion until 2031 to be used to develop land and build facilities, creating about 1,750 jobs.

“Toyota’s commitment to electrification is about achieving long-term sustainability for the environment, American jobs and consumers,” said Ted Ogawa, chief executive officer, 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.”

Part of the goal of the new company is to further develop and expand the local supply chain of lithium-ion automotive batteries. The venture will first focus on producing batteries for hybrid electric vehicles. Further details, including the site, production capacity, and business structure, will be shared later, the announcement states.

Toyota reports that it has sold more than 18.7 million electrified vehicles, including over 4.5 million in the U.S. to date, accounting for nearly 25% of U.S. sales volume. Toyota expects that number to rise to nearly 70% by 2030. To meet demand, the OEM plans to expand its lineup of electrified vehicles, including hybrid, plug-in hybrid, fuel cell and battery electric vehicles, from 55 models to about 70 models by 2025.

This is one of many recent announcements from automakers focusing on battery production and EV infrastructure; Stellantis also reported a partnership with LG Energy Solution to build a factory for lithium-ion batteries in North Americ, while Atlis is working on AMV cell production, Xos, Inc. is working with Cox Automotive to extend EV battery lifecycle, and ELMS is exploring battery swapping.