Toyota Motor announced on Wednesday the commencement of production at its new US$13.9 billion battery plant located in North Carolina. The Japanese automaker also confirmed plans to invest up to US$10 billion more than initially anticipated over the next five years in the United States. Toyota Motor Corporation is a global automotive manufacturer, producing a wide range of vehicles, from passenger cars to commercial vehicles and auto parts. The company is also involved in financial services.
While details regarding the increased investment remain undisclosed, Toyota Motor North America CEO Tetsuo Ogawa described the opening of the new battery plant as a “pivotal moment” in the company’s history. This facility represents Toyota’s first in-house battery plant outside of Japan. The initial announcement of the plant came in December 2021, coinciding with the Biden administration’s efforts to bolster domestic battery production for both hybrid and all-electric vehicles.
Recent market dynamics have shown a softening in the electric vehicle sector, contrasted by a surge in demand for hybrid vehicles. These shifts favour Toyota, which currently leads in U.S. hybrid sales, holding a market share exceeding 51% through the third quarter of this year, as reported by Motor Intelligence data.
It remains unclear how much of the announced investment was previously planned but not publicly disclosed. The announcement follows President Donald Trump’s statement last month regarding Toyota’s intended US$10 billion investment in the U.S. Toyota, along with the broader automotive industry, continues to adapt production strategies in response to regulatory changes affecting electric vehicles and new tariffs on imported vehicles and parts. Through the third quarter of this year, Toyota’s U.S. sales have increased by 9.9%, reaching over 1.3 million vehicles sold.
