Toyota to invest 730 billion yen in EV battery plants in Japan and the US to increase capacity by 40 GWh

Toyota to invest 730 billion yen in EV battery plants in Japan and the US to increase capacity by 40 GWh

Last December, Toyota revealed plans to launch a whole range of electric vehicles (EVs) aimed at different segments, including a few that will wear the Lexus badge. In the months since, the Japanese carmaker has announced several initiatives to support its electrification strategy, and the latest involves a sizeable investment.

Yesterday, the company said it has decided to invest 730 billion yen (approximately RM23.5 billion or USD5.24 billion) in Japan and the United States to ensure a steady supply of batteries for EVs. In an official release, Toyota said it expects EV demand to grow further and will begin battery production between 2024 and 2026.

With this investment, the carmaker intends to increase its combined battery production capacity in Japan and the US by up to 40 GWh, which will help it meet the needs of various customers in all countries and regions by offering multiple powertrains and providing as many options as possible.

Toyota to invest 730 billion yen in EV battery plants in Japan and the US to increase capacity by 40 GWh

Going into detail, 400 billion yen (approximately RM12.9 billion or USD2.9 billion) will be invested in the Himeji plant of Prime Planet Energy & Solutions as well as Toyota plants and property in Japan. Meanwhile, about 325 billion yen (approximately RM10.5 billion or USD2.3 billion) will go to the Toyota Battery Manufacturing plant in North Carolina.

The US battery production facility was announced alongside Toyota’s line-up of future EVs and is expected to come online by 2025. It will have four production lines, each capable of delivering enough lithium-ion batteries for 200,000 vehicles, with the future goal being an expansion to at least six production lines for a combined total output of up to 1.2 million vehicles per year.

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Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard’s strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

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