Toyota Motor has started production at its $13.9 billion battery manufacturing plant in North Carolina, marking a major milestone in its strategy to expand hybrid and electric vehicle output across the United States.
The Japanese automaker first announced the North Carolina project in December 2021 to supply batteries for its hybrid and electric vehicle lineup. The plant will produce hybrid batteries for Toyota’s facilities in Kentucky and a joint venture factory with Mazda in Alabama, Reuters news report said.
Batteries from the new plant will power hybrid versions of popular models such as the Camry, Corolla Cross, and RAV4, as well as a new three-row fully electric vehicle that has yet to be unveiled.
Ted Ogawa, President of Toyota Motor North America, said the company plans to invest an additional $10 billion over the next five years to expand its U.S. manufacturing footprint. “This will bring Toyota’s total investment in the United States to more than $60 billion,” Ogawa said.
Located on a 1,850-acre site, Toyota’s 11th U.S. factory will have an annual capacity of 30 GWh once fully operational. The facility will include 14 battery production lines serving both plug-in hybrid and fully electric vehicles, with plans to employ around 5,000 workers.
The expansion comes amid changing U.S. automotive policies. Transportation Secretary Sean Duffy announced that the administration plans to ease fuel economy standards introduced under the Biden administration, arguing that previous regulations were too strict.
Toyota’s latest investment underscores its commitment to a “multi-pathway approach” to cleaner mobility. “We know there is no single path to progress,” Ogawa noted. “That’s why we are offering a diverse range of technologies including fuel-efficient gas engines, hybrids, plug-in hybrids, battery electric vehicles, and fuel cell vehicles.”
While Toyota has been slower than competitors to adopt full electrification, the company is accelerating hybrid production to meet growing consumer demand and adapt to evolving policy environments.
Volkswagen and other automakers have also indicated plans to increase hybrid offerings as U.S. incentives for electric vehicles face uncertainty under the current administration.
Toyota’s North Carolina plant is expected to play a pivotal role in strengthening the company’s U.S. supply chain for electrified vehicles and supporting its long-term goal of sustainable mobility.
GreentechLead.com News Desk
