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December, 7th 2021

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OCT 18
11:42

Toyota earmarks $3.4 billion for US battery manufacturing

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Japanese carmaker Toyota announced Monday it will invest $3.4 billion in the US automotive battery sector through 2030 as part of its global push towards electrified powertrains, Kallanish reports.  

Toyota Motor North America will set up a new company to build a battery joint venture with Toyota Tsusho. The plan is to start battery production in the US in 2025 to initially supply hybrid electric vehicles (HEVs). The project, which includes an investment of roughly $1.29 billion through 2031, is expected to create 1,750 new jobs.  

“Part of the new company’s activities will include helping Toyota to further develop and expand its local supply chain and production knowledge related to lithium-ion automotive batteries,” the carmaker says in a statement. “Further details of the project, including details on a site, production capacity, business structure, etc. will be shared at a future time,” it adds.  

The world’s largest car manufacturer in terms of sales is falling behind its competitors in the transition to e-mobility. Last month it announced plans to invest $13.5 billion into battery development and production.  

The company's electrified line-up is slated to grow from 55 models today to 70 by 2025, of which only 15 will be battery electric vehicles (BEVs). These models also include HEVs, plug-in hybrid (PHEVs) and fuel cell electric vehicles (FCEVs). 

Toyota plans to sell 2 million BEVs and FCEVs globally by 2030. In the US alone, sales of electrified vehicles - not limited to zero-emission vehicles - are slated around 1.5-1.8m units. Today, electrified vehicles sales in the US market account for almost 25% of Toyota’s total sales in the country. By the end of the decade, this share should rise to nearly 70%, the company estimates. 

Ted Ogawa, ceo of Toyota Motor North America, says the investment “will help usher in more affordable electric vehicles for US consumers, significantly reduce carbon emissions, and importantly, create even more American jobs tied to the future of mobility.” 

Gabriela Farhangi UK