Japanese automotive giant Toyota Motor Corporation has reportedly decided to invest ¥730 billion ($5.2 billion) in the United States and in Japan for the supply of automotive batteries for battery-powered electric vehicles.
The move comes amid rising demand for BEVs, with Toyota aiming to start production between 2024 to 2026. The investment aims to allow Toyota flexibility in meeting the needs of its customers all across the globe by providing multiple powertrains and as many as possible options.
Toyota plans on increasing its combined battery production capacity in the two countries by up to 40 GWh.
With the company’s Toyota Production System and the development of more efficient production lines, the company also plans to reinforce its competitiveness and invest more in training personnel working in battery production and passing down the monozukuri manufacturing skills.
Around ¥400 billion ($2.8 billion) will be invested in Toyota plants and properties as well as the Himeji Plant, owned by Prime Planet Energy & Solutions Co. Ltd. in Japan. Meanwhile, to boost automotive battery production in the US, around ¥325 billion ($2.5 billion) will be invested in the North Carolina plant of Toyota Battery Manufacturing, of which Toyota Motor North America, Inc. holds a 90% stake and Toyota Tsusho Corporation holds 10%.
The Japanese company plans to continue its efforts in building a supply system which can steadily meet the rising demand for battery electric vehicles across multiple regions, including the automotive batteries supply from its partners.
Toyota believes that there is another way to achieve carbon neutrality and that the means of lowering CO2 emissions as much and as quickly as possible while also protecting its customer’s livelihoods vary significantly according to the country and region.
Keeping this in mind, Toyota said that it will continue making every effort to flexibly fulfill the needs of its customers across various regions and countries and offer multiple powertrains with as many choices as possible.