Toyota, the Japanese automaker, is set to invest an additional $8 billion into its first electric vehicle (EV) battery factory in North America. This move is part of the company’s ambitious plans to expand its electrification program and introduce 30 battery electric models globally by the end of the decade.
Key Takeaway
Toyota plans to invest an additional $8 billion into its North Carolina EV battery factory, bringing the facility’s total value to
3.9 billion. The expanded factory will have a production capacity of 30 GWh annually by 2030, reaffirming Toyota’s commitment to a mix of hybrid, plug-in hybrid, and battery electric vehicles.
Expanding the North Carolina Factory
Located in North Carolina, the factory is scheduled to begin production in 2025 and is now valued at an impressive $13.9 billion. This figure is a significant increase from Toyota’s initial plans, which involved a $1.29 billion investment to build a factory manufacturing batteries for hybrid and battery electric vehicles.
The latest investment includes adding eight battery electric and plug-in hybrid battery production lines to the existing facility. Once completed, the factory will have a total of 10 lines and a production capacity of 30 GWh annually by 2030. To put this into perspective, Tesla’s gigafactory, a joint venture with Panasonic, has a cell production capacity of 35 GWh per year.
Toyota’s Commitment to Electrification
Toyota has been perceived as a latecomer in the transition to battery electric vehicles. However, the automaker has recently intensified its efforts to catch up and remains committed to producing and selling a mix of hybrid, plug-in hybrid, and battery electric vehicles.
While some automakers have scaled back their EV plans due to decreased demand for premium electric vehicles, Toyota’s expansion in North Carolina reflects the ongoing growth of the EV industry. The state has become a hotspot for EV battery factories and other related facilities, with over $11 billion invested since 2020.
Boosting the North Carolina Economy
The Toyota factory is expected to create more than 5,000 job opportunities in North Carolina, according to the Economic Development Partnership of North Carolina. This investment is seen as a testament to the state’s status as a hub for innovation and a top location for electric vehicle manufacturers and suppliers.
