Toyota Motor has said it will invest approximately $3.4 billion dollars in developing electric vehicle batteries and in the production of EVs in the USA by the end of the decade.
The new plans include the larger goal of Toyota to invest $13.5 billion globally to match with other car manufacturers who have already committed themselves to spend enormous funds on battery development and electrifying their portfolios. Major car manufacturers such as General Motors have reported similar investments, but much larger. By 2025, General Motors expects to invest $35 billion in the development and production of 30 new electric vehicles for the global market, as well as expanding its electric vehicle assembly capacity.
Toyota, the largest carmaker in the world by volume, has sold around 18.7 million electric vehicles, including over 4.5 million EVs so far in the USA.
Almost one-fourth of Toyota’s sales volume in the United States comes with electric cars. The manufacturer anticipates that by 2030 the share would climb to close to 70%.
In investment in a new $1.3 billion electric-powered battery plant undertaken by a new firm and its metals Toyota Tsusho is part of the Japanese car industry’s North American arm.
Toyota said it aims to establish a new company and a new battery plant with Toyota Tsusho, a unit of the Toyota Group when it announced its investment in EVs and EV batteries in the US. The new factory, whose location is still up in the air, is scheduled to begin operations in 2025. Toyota has stated that the manufacturing capacity and location of the factory will be revealed at a later stage. More than 1,750 additional employment are likely to be created.
Ted Ogawa, Chief Executive Officer, Toyota Motor North America, said, “Toyota’s commitment to electrification is about achieving long-term sustainability for the environment, American jobs, and consumers. This investment will help usher in more affordable electrified vehicles for U.S. consumers, significantly reduce carbon emissions, and importantly, create even more American jobs tied to the future of mobility.”
Initially, Toyota indicated that its new US company will focus on battery production for hybrid vehicles. The manufacturer stated that it will help build and extend its local supply chain and understanding of the production of automotive lithium-ion batteries for electric vehicles.
The plans for a new production plant for Toyota reflect other recent statements by companies such as Ford, which will spend $11.4 billion on two U.S. factories specialized in EV batteries, together with its battery partner, SK Innovation. Stellantis, the automaker founded after a fusion between Fiat Chrysler and Groupe PSA, also revealed on Monday in a preliminary agreement with LG Energy Solutions that it will build battery cells and modules in North America.
The news from Toyota, however, is significantly different since it shows clearly that the industrial giant plans to produce completely in-house batteries.
The Toyota Motor Corporation has lagged behind other manufacturers when it comes to introducing electric vehicles to their product lineup. At this time, the company does not offer any battery electric vehicles (BEVs) in the United States, although it does sell a number of plug-in hybrids and hybrid vehicles there. It said earlier this year that the bZ4X crossover, the first BEV to be introduced in North American markets, will be available next year. By 2025, its EV range will be up to 15 models globally.
The company has already indicated that Toyota will be expanding its electric vehicle line-up from 55 models to around 70 models by 2025 to meet the growing demand for green automobiles, including hybrid (HEV), plug-in hybrid (PHEV), fuel cell (FCEV), and battery electric vehicles (BEV). At the very least 15 of the 70 models will be battery electric vehicles (BEVs).
By the end of the decade, Toyota targets the global sale of around two million zero-emission vehicles. In the same span, the Japanese carmaker anticipates selling up to 1.8 million electric cars in the US.
Toyota’s plan to invest in electric vehicles in the United States comes months after President Joe Biden signed an executive order in August. It intends to see zero-emission cars for at least half of all new vehicles sold in 2030.
Sources: hindustantimes
