Toyota will make a 10-year, $3.4 billion investment into automotive batteries, the company announced Monday.
The money will be spent on developing and localizing battery production, including those for battery electric vehicles. The investment is part of a larger $13.5 billion the company has set aside for battery development and production, the company announced in September.
“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 U.S. consumers, significantly reduce carbon emissions, and importantly, create even more American jobs tied to the future of mobility.”
To drive localization of battery production, Toyota Motor North America said partner with Toyota Tsusho to establish a new company that would build an automotive battery plant in the United States. The project would entail an investment of $1.29 billion through 2031, with the goal of starting production in 2025. The investment includes money for developing the land and building the facilities, which would result in an estimated 1,750 new jobs in America.
The new company will help Toyota develop and expand its local supply chain while building on its production knowledge related to Lithium-ion automotive batteries. The venture will focus on producing batteries for hybrid electric vehicles first. The new venture is expected to help further the company’s goals toward carbon neutrality in a sustainable and practical way, Toyota said.
The announcement furthers the company’s move toward electrification. Currently, electric vehicles account for nearly 25 percent of Toyota’s U.S. sales volume, and the company expects they will account for almost 70 percent by 2030. Due to growing demand, the company said that it will expand its lineup of electrified vehicles, including hybrid, plug-in hybrid, fuel cell, and battery electric vehicles, from 55 models to about 70 models by 2025.