Toyota spending US$8 billion more on North Carolina battery plant

TOYOTA Motor is more than doubling its investment in a North Carolina plant to make batteries for fully electric and plug-in hybrid models, a sign the Japanese carmaker expects US demand for those vehicles to grow. 

Production at the new plant, which is under construction, will be expanded by eight battery manufacturing lines in addition to the previously announced two lines, bringing Toyota’s total spending on the facility to US$13.9 billion, it said on Tuesday (Oct 31) in a statement. 

The nearly US$8 billion in added investment comes just five months after the company boosted spending at the plant by US$2.1 billion.

Toyota has adopted a more cautious approach to all-electric vehicles than many of its global peers but has quietly laid the groundwork for a more robust EV strategy in the US even as sales of its hybrid models are surging. It currently sells two fully electric models in the US – the five-seat Toyota bZ4X and Lexus RZ 450e – both of which are manufactured in Japan.

The facility’s batteries will be used in several models, including a new three-row all-electric SUV to be made at Toyota’s Kentucky assembly factory starting in 2025 – its first US-made EV. The battery plant, which was announced two years ago, also is scheduled to begin output in 2025. BLOOMBERG