Toyota Charges into Electrified Future in the U.S. with 10-year, $3.4 billion Investment

Rhea-AI Summary

Toyota announced a $3.4 billion investment in automotive battery production in the U.S. by 2030. This investment supports the localization of battery manufacturing for electric vehicles and is part of a broader $13.5 billion global initiative. The establishment of a new company and battery plant is set to create 1,750 jobs and begin operations in 2025. Toyota aims to increase its electrified vehicle sales to 70% of U.S. sales by 2030, contributing to carbon neutrality and sustainable mobility.

Positive

• Investment of $3.4 billion in U.S. battery production by 2030.
• Creation of 1,750 new jobs in America.
• Establishment of a new company and battery plant for enhanced localization.
• Expansion of electrified vehicle offerings from 55 to 70 models by 2025.

Negative

• None.

PLANO, Texas, Oct. 18, 2021 /PRNewswire/ -- Toyota announced today that it will invest approximately $3.4 billion (380 billion yen) in automotive batteries in the United States through 2030. Specifically, the investment is for developing and localizing automotive battery production, including those for battery electric vehicles, and is part of the global total of approx. $13.5 billion (1.5 trillion yen) set aside for investment in battery development and production announced last month by Toyota Motor Corporation.

To drive battery production localization, Toyota Motor North America also announced today that it will establish a new company and build an automotive battery plant together with Toyota Tsusho in the U.S. Aiming to start production in 2025, the project includes an investment of approximately $1.29 billion until 2031, which includes funds that will be used to develop land and build facilities, resulting in the creation of 1,750 new American 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 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 venture will first focus on producing batteries for hybrid electric vehicles. Additionally, the move is expected to help further the company's goals to create a net positive impact on the planet and society, including advancing its efforts towards carbon neutrality in a sustainable and practical way. Further details of the project, including details on a site, production capacity, business structure, etc. will be shared at a future time.

Quick facts about Toyota's electrification efforts:

• Cumulatively, Toyota has sold more than 18.7 million electrified vehicles, including over 4.5 million in the U.S.
• While electrified vehicles already account for nearly 25 percent of Toyota's U.S. sales volume, that number is expected to rise to nearly 70 percent by 2030.
• To meet the growing demand, Toyota continues to steadily expand its lineup of electrified vehicles, including hybrid (HEV), plug-in hybrid (PHEV), fuel cell (FCEV) and battery electric vehicles (BEV), from 55 models today to about 70 models by 2025.
• Of the 70 models, 15 will be BEVs, including seven Toyota bZ (Beyond Zero) models.
• By 2030, Toyota expects to sell two million zero emission vehicles (BEVs and FCEVs) globally, and in the U.S., the company expects to sell between 1.5 million to 1.8 million electrified vehicles, including ZEV models.

About Toyota
Toyota (NYSE: TM) has been a part of the cultural fabric in the U.S. for more than 60 years, and is committed to advancing sustainable, next-generation mobility through our Toyota and Lexus brands, plus our nearly 1,500 dealerships. 

Toyota has created a tremendous value chain and directly employs more than 36,000 in the U.S. The company has contributed world-class design, engineering, and assembly of more than 30 million cars and trucks at our 9 manufacturing plants, 10 including our joint venture in Alabama that began production in September 2021.

To help inspire the next generation for a career in STEM-based fields, including mobility, Toyota launched its virtual education hub at www.TourToyota.com with an immersive experience and chance to visit many of our U.S. manufacturing facilities. The hub also includes a series of free STEM-based lessons and curriculum through Toyota USA Foundation partners, virtual field trips and more. For more information about Toyota, visit www.toyotanewsroom.com.

Media Contact:
Aaron Fowles
310-561-2321
Aaron.Fowles@toyota.com  

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SOURCE Toyota Motor North America

FAQ

What is Toyota's investment plan in the U.S. regarding battery production?

Toyota plans to invest approximately $3.4 billion in automotive battery production in the U.S. through 2030.

How many jobs will Toyota's new battery plant create?

The new battery plant is expected to create 1,750 new jobs in the United States.

When will Toyota start production at its new battery facility?

Toyota aims to start production at the new battery facility in 2025.

What percentage of Toyota's U.S. sales will be electrified vehicles by 2030?

Toyota expects electrified vehicles to account for nearly 70% of its U.S. sales volume by 2030.