Toyota invests up to 5.6 billion dollars in the production of

Reading time: 2 minutes

Auto giant Toyota announced Wednesday that it is tripling its investment in a US plant that will produce batteries for both hybrid and battery electric vehicles to $3.8 billion, reports CNBC.

Toyota Battery Manufacturing North Carolina is set to begin operations in 2025, with the company saying the total investment in the plant will now be $3.8 billion.

Norm Bafunno, who is senior vice president for manufacturing and engineering at Toyota Motor North America, said the announcement marked “another significant milestone” for the company.

The additional investment in the US is part of a larger investment of up to $5.6 billion in battery production, with Toyota noting that demand for battery electric vehicles was growing.

To that end, the company said it will aim to increase “combined battery production capacity” in the US and Japan by up to 40 gigawatt hours.

In addition to diesel and gasoline vehicles, Toyota is known for its hybrid and hydrogen fuel cell offerings. It is also trying to make headway in the increasingly competitive electric battery market, where firms such as Tesla and Volkswagen are jockeying for position.

This was not without problems. In June 2022, Toyota issued a safety recall for more than 2,000 bZ4X all-electric SUVs.

On Wednesday, the company stressed that it “will continue to make every effort to flexibly meet the needs of” customers “in all countries and regions, offering more powertrains and offering as many options as possible.”

Indeed, the Toyota Europe website states that “the internal combustion engine continues to be the most popular means of powering vehicles and will continue to play a role for the next 20 to 30 years.”

All of the above comes at a time when major economies are drawing up plans to reduce the environmental footprint of road transport.

Just this month, the California Air Resources Board approved a rule that will require all new car sales in the state to be zero-emissions by 2035.

Elsewhere, the UK wants to stop the sale of new diesel and petrol cars and vans by 2030. The country will require all new cars and vans to have zero tailpipe emissions from 2035.

The European Union – which the United Kingdom left on January 31, 2020 – pursues similar goals.

According to the International Energy Agency, sales of electric vehicles reached 6.6 million in 2021. In the first quarter of 2022, sales of electric vehicles reached 2 million, a 75% increase from the first three months of 2021.