On Sunday, Toyota Motor Corporation announced plans to boost its investment in producing electric vehicle (EV) and hybrid vehicle (HV) batteries in North America.
Nihon Keizai Shimbun reported that Toyota is considering further investments to establish a new factory, following its current plant in the southern United States.
Sean Suggs, president of Toyota North Carolina, indicated that the company is evaluating the construction of additional factories to accommodate the anticipated rise in electric vehicle demand, noting that various regions are under consideration for potential investment.
He further explained that the timing of additional investments has not been determined yet and will depend on demand, noting that the company will monitor sales trends over the next five to ten years.
Toyota aims to increase its electric vehicle sales share in North America from 50% to 80% by 2030. To reduce production costs, it is important to increase local production of batteries, which are key components.
The same factory manufactures batteries for both EVs and HVs. The new plant under construction in North Carolina, with a total investment of $13.9 billion, will operate eight production lines sequentially. Production of HV batteries is scheduled to begin in the first quarter of 2025, followed by EV batteries in the fourth quarter, and test production for plug-in hybrid vehicles (PHVs) in 2026.
In October, the sales ratio of Toyota’s electrified vehicles, including hybrids, surpassed 50% for the first time, marking a 50% increase compared to last year.
The U.S. automotive market, however, is experiencing a slower transition to electric vehicles. Although EV sales increased by 11% year-on-year from July to September, they still account for less than 10% of new vehicle sales.
With the presidential election voting set to begin on the 5th, Suggs emphasized, “Regardless of the outcome, our commitment to supply vehicles and parts where needed to contribute to local employment remains unchanged.”
President Joe Biden is working to boost domestic EV and battery production through the Inflation Reduction Act (IRA), which provides sales subsidies for North American EVs and aims to establish a supply chain independent of China.
In contrast, former President Donald Trump, the Republican presidential candidate, opposes the Biden administration’s EV policies.
