Toyota Motor Corporation has announced it plans to invest up to 730 billion yen (£4.9 billion/$5.6 billion) in Japan and the United States towards supplying batteries for electric vehicles (EVs). Demand for battery electric vehicles (BEVs) is growing and the Japanese carmaker aims to begin battery production between 2024 and 2026.
This investment is aimed at enabling Toyota to flexibly meet the needs of its various customers in all countries and regions by offering multiple powertrains and providing as many options as possible.
With this investment, Toyota intends to increase its combined battery production capacity in Japan and the United States by up to 40GWh. By utilising the Toyota production system and building production lines that are more efficient than ever, Toyota also intends to strengthen its competitiveness and invest in the training of personnel engaged in battery production and the passing down of ‘monozukuri’ manufacturing skills.
In Japan, a total of approximately 400 billion yen (£2.4 billion/$2.8 billion) will be newly invested in the Himeji Plant of Prime Planet Energy & Solutions Co., Ltd. (PPES) and in Toyota plants and property.
In the United States, approximately 325 billion yen (£2.16 billion/ $2.5 billion) will be newly invested in Toyota’s battery manufacturing plant in North Carolina. This is 90 percent owned by Toyota Motor North America, Inc. and 10 percent by Toyota Tsusho Corporation and will be used towards increasing automotive battery production.
Toyota intends to continue its efforts to build a supply system that can steadily meet the growing demand for BEVs in various regions, including the supply of automotive batteries from its partners.
Toyota believes that there is more than one option for achieving carbon neutrality. It also believes that the means of reducing CO2 emissions as much as possible and as quickly as possible while protecting the livelihoods of its customers vary greatly depending on the country and region.
At the end of last year, Toyota announced it plans to produce 30 new electric vehicles (EVs) by 2030. As part of this strategy, theToyota owned Lexus brand will also aim to be 100 percent battery electric in Europe, North America and China by 2030. This announcement underpins Toyota’s plan for 100 percent CO2 reduction in all new vehicle sales by 2035 in West Europe.
With Toyota getting involved in battery production it represents the final piece in the original equipment manufacturers’ (OEMs) engagement emobility puzzle as the company joins all the key players in the industry.
This also supports the launch of the brand’s bZ4X electric car, which is ready for its European sales launch, and the launch of two electric cars in the US. Earlier this year Toyota also announced it will be expanding its partnership with Stellantis, a global mobility player with 14 brands including Vauxhall, Peugeot, Fiat, Citroën and Jeep, for a new large-size electric commercial van.