Toyota will invest $1.29 Billion to build battery plant in the US to manufacturer the electric and hybrid vehicles batteries. The news comes amid a rush of announcements from around the world about ramping up manufacturing of batteries for electric vehicles. The majority of automobile manufacturers are attempting to shift away from internal combustion engines and toward zero-emission battery vehicles as soon as possible.
The site of the Toyota facility has not been revealed, but the firm has stated that it would eventually employ 1,750 people and will begin manufacturing batteries in 2025, with production steadily increasing until 2031.
Toyota $3.4 Investment for Battery Plant Till 2030
During the next decade, Toyota aims to invest a total of $3.4 billion in the United States in automobile batteries, including the construction of this factory. It did not specify how the remaining $2.1 billion would be spent, although it is probable that a portion of it would be used to build another battery facility.
It was announced Monday that Stellantis, formerly known as Fiat Chrysler, and LG Energy Solution are partnering to build a battery manufacturing facility to assist the automaker in achieving its goal of having 40 percent of its U.S. sales come from vehicles that are at least partially powered by electricity by 2030. However, they did not specify where the factory will be located.
The Foxconn Technology Group, which manufactures iPhones for Apple and other companies, also said on Monday that it will begin producing electric cars and buses for auto manufacturers in China, North America, Europe, and other regions in the near future.
Volvo Cars on Monday provided further details about its upcoming initial public offering, which would help the business fund its ambitious ambition to become an all-electric car firm by 2030. In an IPO filing, the Swedish automaker, which is owned by Chinese automaker Geely Automotive, stated that the firm’s initial public offering (IPO) will value the company between 163 billion and 200 billion kronor ($18.8 billion to $23 billion) when shares begin trading on Oct. 28.
Also announced was the conversion of a transmission factory in northwest England into a facility dedicated to the production of electric power units for automobiles and trucks marketed throughout Europe by Ford Motor Company.
Toyota investment in Ford
Toyota has joined Ford and General Motors in announcing recent major investments in battery manufacturing facilities in the United States. Batteries will be manufactured in Ohio and Tennessee by General Motors, while Ford will construct battery manufacturing facilities in Tennessee and Kentucky.
Toyota will partner with Toyota Tsusho, a subsidiary that already manufactures a variety of parts for the carmaker, to establish a new business to manage its new battery facility in the United States. Toyota said Monday that the firm will also assist the startup in expanding its supply chain in the United States and increasing its expertise of lithium-ion vehicle batteries.
To achieve long-term sustainability for the environment, American employment, and consumers, Toyota’s North American CEO, Ted Ogawa, issued a statement on the company’s decision to electrify its vehicles.
The new facility would most likely be located near one of the company’s assembly factories in the United States, which are located in Missouri, Kentucky, Indiana, Alabama, or Texas.
Toyota intends to sell 2 million zero-emission hydrogen and battery-electric vehicles per year worldwide by 2030, according to the company. Toyota intends to sell 1.5 million to 1.8 million electrified vehicles in the United States by 2030, with at least a portion of the vehicles being electric.
In the United States, it now provides hydrogen vehicles, hybrids, and plug-in hybrids that can go for a short distance on electricity before converting to a gas-electric hybrid engine for the remainder of the trip. Toyota claims that vehicles that function at least partially on electricity already account for approximately a quarter of its sales in the United States, with the company expecting that figure to increase to almost 70% by 2030.
By 2025, the firm expects to have 15 battery electric vehicles available for purchase throughout the world.