Toyota Motor Corporation announced plans on Wednesday to invest up to 730 billion yen (approximately USD 5.6 billion) in Japan and the United States to produce and supply batteries for battery electric vehicles (BEVs), which are in high demand.
While the Japanese automaker has been chastised for its slow adoption of electric vehicles, it expects to start producing batteries between 2024 and 2026. Its investments will result in an increase of up to 40 GWh in combined battery production capacity in Japan and the United States.
The Himeji Plant, operated by Prime Planet Energy & Solutions, and other Toyota plants and properties will receive 400 billion yen ($2.8 billion) of the 730 billion yen ($5.6 billion) investment.
Meanwhile, Toyota Battery Manufacturing North Carolina, which is 90% owned by Toyota Motor North America and 10% owned by Toyota Tsusho Corporation, will receive 325 billion yen ($2.34 billion).
Toyota reiterated that "there are more than one option for achieving carbon neutrality," highlighting how its efforts with hybrids and hydrogen-powered fuel cells can also be solutions. According to the manufacturer, which is based in the central Japanese city of Toyota, the options may vary depending on where a customer lives.
“This investment is aimed at enabling Toyota to flexibly meet the needs of its various customers in all countries and regions by offering multiple powertrains and providing as many options as possible,” it said in a statement.
The bZ4x is Toyota's only purely electric vehicle on the market right now. It will be joined by the bZ3, which will almost certainly remain a China-only product. A larger bZ5 electric sedan is also on the way, as are a few more battery-powered models.