Toyota said Tuesday it will invest another $8 billion in its first electric vehicle battery factory in North America, as the Japanese automaker seeks to ramp up its electrification program and introduce 30 battery-electric models globally by the end of the decade.
The North Carolina-based factory, which is scheduled to enter production in 2025, is now valued at $13.9 billion, according to the company. This marks a jump from Toyota’s initial plans to make a $1.29 billion investment to build a factory in North America that will make batteries for hybrid electric vehicles and battery electric vehicles.
This latest investment will add eight electric and plug-in hybrid battery production lines to the facility located on 1,825 acres in Liberty, North Carolina. Once completed, the factory will have 10 lines and will reach a total production capacity of 30 GWh annually in 2030. To put it in perspective, the so-called Tesla gigafactory, which is a joint venture between the automaker and Panasonic, has the capacity to produce 35 GWh of cells per year.
Toyota was long seen as lagging behind in its commitment to moving its entire range to electric batteries. The automaker, which has recently ramped up its electric vehicle program, continues to maintain its focus on producing and selling a mix of hybrid, plug-in hybrid and battery electric vehicles.
Toyota’s expansion plans come as other automakers put the brakes on electric vehicles. Ford and GM, which have set ambitious goals to convert the majority of their portfolios to all-electric vehicles, have tempered their plans as demand for premium electric vehicles has declined. These companies are still developing next-generation electric vehicles, but have delayed battery factory plans or the launch of new electric vehicle models. Last week, Ford said it was delaying about $12 billion in investments related to electric vehicles.
Still, the rise of electric vehicle factories continues to advance, particularly in the so-called battery belt that stretches from Michigan to South Carolina.
North Carolina has become a hotspot for EV battery factories and other EV-related facilities. More than $11 billion has been invested in the electric vehicle industry in the state since 2020, including a $2 billion investment from Vietnamese automaker Vinfast and Wolfspeed’s plan to build a semiconductor manufacturing plant. of 5 billion dollars.
The Toyota plant is expected to employ more than 5,000 people, according to the North Carolina Economic Development Association.
“Today’s announcement is yet another validation of North Carolina’s national recognition as a hub of innovation and a prime location for electric vehicle manufacturers and suppliers,” said Christopher Chung, executive director of the North Carolina Economic Development Partnership. . “Japanese investment has a significant impact on our state, with more than 28,000 North Carolinians working for Japanese companies every day. “We value and appreciate the current partnership our state has with Japan and the economic impact this partnership will continue to have.”