SAN FRANCISCO (KRON) – Toyota Motor North America announced Monday it will build a new $1.29 billion battery plant for electric vehicles near Greensboro, North Carolina.
The company said that it expects the facility to be capable of producing enough lithium-ion batteries for 200,000 all electric and plug-in hybrid electric vehicles with plans to eventually expand battery production to up to 1.2 million vehicles per year.
The facility is expected to create 1,750 jobs in the state when it opens in 2025.
“The future of mobility is electrification and the Greensboro-Randolph Megasite is the ideal location to make that future a reality,” said Ted Ogawa, CEO of Toyota Motor North America.
“North Carolina offers the right conditions for this investment, including the infrastructure, high-quality education system, access to a diverse and skilled workforce, and a welcoming environment for doing business,” Ogawa added.
“Today marks the beginning of a mutually beneficial partnership with the Tar Heel state as we embark on our journey to achieve carbon neutrality and provide mobility for all.”
Toyota joins race to build batteries in the U.S.
Toyota is not the only automaker adding battery production.
In September, Ford announced it was going to build three lithium-ion battery plants — two in Kentucky and a third near Memphis, Tennessee.
The Tennessee plant will build the next generation F-150 Lightning electric pickup trucks.
In total, the three plants will enable 129 gigawatt hours a year of U.S. production capacity for Ford — enough to power 1 million electric vehicles annually, Ford officials said.
General Motors (GM) recently opened its first battery plan in Lordstown, Ohio — to supply batteries for the new GMC Hummer pickup, with another three North American battery plans to follow.
GM plans to produce 30 battery-electric vehicles to sell by 2025.
Tesla, which operates a massive Gigafactory in Reno, Nevada, is also adding capacity at its new assembly plant in Texas.
Until now, most automotive batteries have come from Asia, primarily China and South Korea.
President Joe Biden has said he wants to reduce the U.S’s dependence on China, adding that Congress is considering revising sales incentives for electric vehicles — including an extra $500 in tax credits for those with U.S.-made batteries.