Toyota Motor announced on Tuesday that it would accelerate its push to electrify its range by adding approximately 3,000 jobs and increasing investment by $8 billion at its North Carolina plant that makes batteries for electric vehicles.
The latest action will increase the business’s overall investment in the plant to approximately $13.9 billion and create jobs for over 5,000 people. The company expects to have electrified choices available for all of its models by 2025.
Though both Detroit-based automakers have lowered their investment plans following their costly new contract agreements with the United Auto Workers union, legacy automakers like Ford Motor and General Motors have been vying to increase their EV output and catch up to market leader Tesla.
Toyota did not provide a breakdown of the investment and did not respond to requests for additional information right away. In contrast to its international competitors, Toyota had previously placed more bets on hybrid and hydrogen fuel cell cars than on battery electric vehicles (EVs). However, this year, the best-selling car in the world declared a change of heart, announcing plans to commercialize improved batteries and use Tesla’s die-casting technology.
Other businesses intending to establish bases in the United States to develop their battery plants include Panasonic, Samsung SDI Co., and Stellantis NV, the parent company of Chrysler.
Beginning operations in 2025, Toyota’s North Carolina factory will be the company’s first automobile battery plant worldwide.
Six battery production lines, four supporting hybrid cars like the Prius, and two more lines to support battery electric vehicles (EVs) will be present.
Toyota’s hub in North Carolina
From Redwood Materials to Vinfast of Vietnam, businesses are planning to make significant investments in North Carolina, which is becoming a major hub for the production of batteries and electric vehicles.
Following the announcement of Toyota‘s additional investment, North Carolina Governor Roy Cooper stated on Tuesday, “North Carolina’s transition to a clean energy economy is bringing better-paying jobs that will support our families and communities for decades to come.”
Additionally, India’s Epsilon Advanced Materials (EAM) said last week that it will establish a $650 million battery plant in the state that is expected to open in 2026 and eventually provide up to 1.1 million electric vehicles in the country.
