Toyota Invests Further $2.5 Billion In Battery Gigafactory In North Carolina

Toyota has made a spectacular U-turn with regards to its stance around electric vehicles after pioneering hybrid powertrains in the last two decades. Its CEO Akio Toyoda, the scion of its founder has often in the past lambasted the industries move towards electrification but last year it announced a $1.3 billion investment for a battery gigafactory in the US and launched its first Toyota branded EV which has been received well for its technology. Now, after its Japanese rival announced a major investment in battery production in partnership with LG Energy Solutions, Toyota has announced another $2.5 billion into its facility that will be in North Carolina.

Overall, the facility will create over 2,400 jobs and the production of the battery systems will start probably in 2025. Interestingly, this is a joint venture between Toyota Motor North America and Toyota Tsusho which will make battery packs plus lithium-ion cells.

“This marks another significant milestone for our company. This plant will serve a central role in Toyota’s leadership toward a fully electrified future and will help us meet our goal of carbon neutrality in our vehicles and global operations by 2035,” said Norm Bafunno, Senior Vice President, unit manufacturing and engineering at Toyota Motor North America.

“This is an exciting time for Toyota, the region and the many North Carolinians we will soon employ. This incremental investment reflects our continued commitment to ensuring jobs and future economic growth for the Triad region,” said Sean Suggs, the president of the North Carolina battery manufacturing facility.

This facility is 90 per cent owned by Toyota Motor North America while 10 per cent is owned by Toyota Tsuho. Overall investment in the plan stands at $3.8 billion by 2031 which will include batteries for hybrid cars and electric cars. The capacity when all production lines are activated is expected to be around 800,000 packs per year.