Toyota announces $5.6 billion investment in battery production in Japan, US

Toyota Motor Corporation  has decided to invest up to 730 billion yen (approximately $5.6 billion) in Japan and the United States toward supplying automotive batteries for battery electric vehicles (BEVs), for which demand is on the rise.

The company aims to begin battery production between 2024 and 2026 and the investment is aimed at enabling Toyota to flexibly meet the requirements of its various customers by offering multiple powertrains and providing as many options as possible.

With this investment, Toyota said in a press note that it intends to increase its combined battery production capacity in Japan and the United States by up to 40 GWh. By utilising the Toyota Production System and building production lines that are more efficient than ever, Toyota also intends to further strengthen its competitiveness and invest in the training of personnel engaged in battery production and the passing down of monozukuri manufacturing skills.

In Japan, a total of approximately 400 billion yen will be newly invested in the Himeji Plant of Prime Planet Energy & Solutions Co. (PPES) and in Toyota plants and property, while in the United States, approximately 325 billion yen (approximately USD 2.5 billion ) will be newly invested in Toyota Battery Manufacturing, North Carolina (TBMNC; owned 90 percent by Toyota Motor North America, Inc. and 10 percent by Toyota Tsusho Corporation) toward increasing automotive battery production.

Toyota intends to continue its efforts to build a supply system that can steadily meet the growing demand for BEVs in various regions, including the supply of automotive batteries from its partners.

Toyota said it believed that there is more than one option for achieving carbon neutrality. It also believes that the means of reducing CO2 emissions as much as possible and as quickly as possible while protecting the livelihoods of its customers vary greatly depending on the country and region.

With such in mind, Toyota said it will continue to make every effort to flexibly meet the needs of its various customers in all countries and regions by offering multiple powertrains and as many options as possible.