Toyota will be investing more money in the future of electric vehicles (EVs).
The Japanese automaker recently announced it is increasing its investment to approximately $5.6 billion to make batteries for EVs with the aim of starting battery production at its upcoming site between 2024 and 2026.
Toyota previously announced that it would open a new EV battery manufacturing plant in North Carolina in December 2021.
Toyota Increased Investment Details
Toyota mentioned in its announcement that it is investing up to ¥730 billion or around $5.6 billion, more than tripling its initial investment of $1.29 billion in December 2021.
According to the automaker, the additional investment would be used to further increase the combined battery production capacity in Japan and the United States by up to 40 GWh, enabling it to flexibly meet the needs of its various customers in all countries and regions.
It also wants to better train its personnel so it can pass down "monozukuri" manufacturing skills. According to SA Partners, Toyota's monozukuri means production or "the true spirit of Toyota in relation to the concept of sustainability."
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To be specific, approximately $2.89 billion will go to the Himeji Plant of Prime Planet Energy & Solutions Co, Ltd., and Toyota plants and property. Meanwhile, approximately $2.5 billion will be invested in the Toyota Battery Manufacturing it previously invested on in December 2021.
The company previously invested $1.29 billion in December 2021 to establish an EV battery plant in the North Carolina Greensboro-Randolph Megasite, which will be called Toyota Battery Manufacturing, North Carolina, once it is built.
According to Toyota Motor North America CEO Ted Ogawa, North Carolina, the company chose North Carolina as it offers the right conditions for this particular investment.
North Carolina has the infrastructure, high-quality education system, access to a "diverse and skilled workforce," and a welcoming environment for doing business.
"The future of mobility is electrification and the Greensboro-Randolph Megasite is the ideal location to make that future a reality," Ogawa said.
Another Toyota Investment
In addition to the site in North Carolina Greensboro-Randolph Megasite, Auto Blog mentioned in its article that Panasonic has partnered with Toyota to establish another plant in Liberty, North Carolina.
According to Norm Bafunno, senior vice president of powertrain manufacturing and engineering at Toyota Motor North America, this partnership was also made through the companies' joint project venture, Prime Planet Energy & Solutions Co, Ltd.
However, unlike the plant at the North Carolina Greensboro-Randolph Megasite, the one in Liberty is expected to be operational in 2025.
The More The Merrier
Toyota isn't the only one investing in EV battery plants in America. Honda, in partnership with LG Energy Solutions, has also announced it plans to establish a plant with an annual capacity of about 40 GWh to supply its facilities in the region with pouch-type lithium-ion EV batteries.
This plant is expected to be operational by the end of 2025.
