© Reuters. The Toyota logo appeared on its booth during the Shanghai Auto Show Media Day on April 19, 2021 in Shanghai, China. REUTERS/Aly Song/File Photo
Washington (Reuters)- Toyota Motor (NYSE:) Corp announced on Monday that it is building a new $1.29 billion battery plant in North Carolina to expand its electric vehicle business.
Chris Reynolds said that the new plant is located in a Liberty plant and will start production in 2025. It will initially be able to provide lithium-ion batteries for 800,000 cars per year and will “pave the way” for Toyota’s electric vehicle production in the United States. Chief Administrative Officer of Toyota Motor North America.
The investment will be made by a new company called Toyota Battery Manufacturing, which is expected to create 1,750 new jobs in the United States.
In October, Toyota stated that it would establish a new company and establish a new American car battery factory with Toyota Tsusho, which is the metal trading arm of the automaker and a division of the Toyota Group. Toyota will hold 90% of the battery company.
Toyota said that the North Carolina plant plans to eventually expand the production line to at least six production lines, with a total annual output of 1.2 million vehicles.
This investment is part of Toyota’s announcement last month that it will invest US$3.4 billion (380 billion yen) in the development and production of US car batteries by 2030.
The funding is part of Toyota’s $13.5 billion announced in September. The company plans to invest in the development of batteries and battery supply systems worldwide by 2030.
Toyota said that the new company will initially focus on producing batteries for hybrid vehicles.
Faced with increasingly stringent environmental regulations, automakers around the world are investing billions of dollars to increase the production of batteries and electric vehicles.
Toyota launched a lobbying campaign to try to persuade US lawmakers not to provide an additional $4,500 in tax incentives for union-built electric cars.
In August, US President Joe Biden signed an executive order setting a goal that half of all new cars sold in 2030 will be zero-emission vehicles.
Biden’s 50% goal and automakers’ 2030 goals include battery electric, fuel cell, and plug-in hybrid vehicles with gasoline engines.
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