Toyota announced on Monday that it will invest approximately $3.4 billion (Rs 25,163 crore) in automotive batteries in the United States through 2030. The investment is for developing, localising automotive battery production – including those for battery electric vehicles – and is part of the global total of approximately $13.5 billion (Rs 99,913 crore) set aside by Toyota Motor Corporation.
- Toyota’s investment aimed at achieving carbon neutrality
- EVs currently account for 25 percent of Toyota’s sales in the U.S.A
- Toyota to expand its electric vehicle lineup from 55 to 70 models by 2025
To drive battery production localisation, Toyota Motor North America also announced that it will set up a new company and build an automotive battery plant together with Toyota Tsusho in the USA aiming to start production in 2025. The project includes an investment of approximately $1.29 billion (Rs 9,547 crore) until 2031, including funds 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 US consumers, significantly reduce carbon emissions, and importantly, create more American jobs tied to the future of mobility.”
Part of the new company's activities will include helping Toyota further develop and expand its local supply chain and production knowledge related to lithium-ion automotive batteries with the venture first focusing 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 information on a site, production capacity and business structure, will be announced in the future, says Toyota.
Toyota's electrification efforts
Cumulatively, Toyota has sold over 18.7 million electrified vehicles, including over 4.5 million in the USA. While electrified vehicles already account for nearly 25 percent of Toyota's sales volume in the country, that number is expected to rise to nearly 70 percent by 2030.
To meet the growing demand, Toyota is steadily expanding 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 USA, the company expects to sell between 1.5 million to 1.8 million electrified vehicles, including ZEV models.
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