Toyota to invest extra $10 billion in U.S. to make EV batteries
Toyota Motor Corp. said Wednesday it will make an additional investment of up to $10 billion in the United States over the next five years, as the Japanese automaker ramps up battery production for hybrid and electric vehicles, Kyodo reports.
The announcement was made as Toyota, the world's largest automaker by volume, opened its first overseas plant dedicated to battery production in North Carolina. It aims to bring its cumulative investment total in the United States, a key market, to $60 billion.
Tetsuo Ogawa, president and chief executive officer of a Toyota unit in charge of North America, said the new factory and investment mark a new historical milestone for the company and show its unwavering commitment to local communities, dealers and suppliers.
Toyota invested around $13.9 billion in the new North Carolina factory, which will produce lithium-ion batteries for hybrids, EVs, and plug-in hybrids. The automaker plans to employ up to 5,100 people there.
The move comes after Washington imposed a 15 percent tariff on Japanese car imports in September, down from the 27.5 percent initially set by President Donald Trump. The figure, however, remains six times higher than the 2.5 percent rate that applied before April.
As Trump seeks to reduce the U.S. trade deficit with Japan, an idea has emerged for Japanese automakers like Toyota to import vehicles manufactured in the United States to Japan.
Earlier it was reported that Toyota had remained the world's top automaker in 2024.
