Toyota Shares Investment Plan for EV Battery Production in the U.S.
Toyota will invest $3.4 billion to develop its automotive battery program in the U.S. and wants its alternative power vehicle lineup to consist of as many as 70 models by 2035.
Toyota was once an electrification pioneer with offerings like Mirai and Prius. At the time, these nameplates were revolutionary products. Today, the company is one of the last remaining legacy automakers, which has not embraced electric mobility on a mass scale. Well, Toyota changed that earlier this week. The company announced its plans to invest around $3.4 billion to develop its automotive battery program.
Until 2031, the company will allocate an investment of nearly $1.29 billion to achieve this goal, which will help create 1,750 new jobs in the U.S. The funds will also help the automaker procure land and develop manufacturing facilities across the country. Chief Executive Officer of Toyota Motor North America- Ted Ogawa- shared his thoughts on the company’s new investment plan.
“Toyota’s commitment to electrification is about achieving long-term sustainability for the environment, American jobs and consumers,” said Ogawa. He further added, “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.”
Toyota confirms it will introduce 15 BEVs by 2025, which will include seven battery-electric bZ (Beyond Zero) models.
The company’s investment in the United States will be part of a $13.5 billion (approx) global investment. With its substantial investment, Toyota aims to develop and localize battery production. The Japanese automaker will make its investment in the USA through 2030. By 2025, Toyota wants its alternative power vehicle lineup to consist of as many as 70 models.
The Japanese automaker’s BEV lineup will consist of seven Toyota bZ (Beyond Zero) models. Toyota Motor North America will partner with Toyota Tsushoto to establish a new venture. The new company will be responsible for establishing automotive battery plants across the U.S. This will help the automaker start battery production as early as 2025, and improve its battery production localization.
As part of its new initiative, Toyota aims to expand its local supply chain, in addition to developing its production knowledge about lithium-ion automotive batteries. The automaker will initially use its venture to produce batteries for PHEVs. Therefore, it is evident that the hybrid electric vehicle segment continues to be Toyota’s top priority. The company expects the number of its electrified vehicles to increase to almost 70% of its sales volume in the U.S by 2030.
Image Source: Toyota