Toyota to invest $3.4 billion for US EV
Create new jobs, develop EV tech with future new company Metal Tech News – October 20, 2021
Last updated 11/16/2021 at 4:04pm
As one of the largest automobile manufacturers on the planet, Toyota Motor Corporation, has long spearheaded low-carbon transportation. The company's latest move shows it means business, with a 10-year, US$3.4 billion (380 billion yen) investment into electric vehicle technologies in the United States.
Specifically, the investment is for the development and localization of EV battery production and is part of a global total of approximately US$13.5 billion (1.5 trillion yen) set aside for investment in battery development and production announced by Toyota in September.
"Toyota's commitment to electrification is about achieving long-term sustainability for the environment, American jobs and consumers," said Ted Ogawa, CEO of Toyota North America. "This investment will help usher in more affordable electrified vehicles for U.S. consumers, significantly reduce carbon emissions, and more importantly, create even more American jobs tied to the future of mobility."
Although Toyota has kept rather quiet regarding its EV strategy compared to more shocking announcements, such as General Motors, the Japan-based automaker has long been setting standards and pursuing sustainable transportation.
Not only was Toyota an early developer of hybrid electric vehicles with its Prius, which has been a top choice for lower-carbon transportation since 1997, the company was also an early investor and joint developer for Tesla.
Until recently, high battery costs have prohibited a more widespread effort, but it is expected by 2030 that nearly 20% of Toyota's global vehicle production will be BEVs (battery electric vehicles) and 70% of U.S. vehicle production will be electrified, supercharging demand.
Toyota's plan is to establish a foothold in the U.S. by building an entirely new company and to develop an automotive battery plant together with Toyota Tsusho (a part of Toyota Group) to drive battery production localization.
Aiming to start production in 2025, the project comprises an investment of US$1.29 billion until 2031, which includes funds that will be used to develop land and build facilities, resulting in the creation of nearly 2,000 new American jobs.
Additionally, part of the new company's activities will include helping Toyota to further develop and expand its local supply chain and production knowledge related to lithium-ion batteries. The venture will first focus on producing batteries for hybrid electric vehicles.
Furthermore, the move is expected to help push 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.
Details regarding the project, including the site, production capacity, business structure, etc., will be shared at a future time.