Toyota will invest $3.4bn in automotive batteries development and production in the US through 2030 as part of its global push for producing more electric vehicles (EVs).
The global automaker is tapping into the ambition of US President Joe Biden to have electric cars accounting for half of all new cars sold in the country by 2030. Last month, Toyota announced a $13.5bn global investment plan to develop more efficient batteries and vehicles.
As part of its US investment, Toyota will build a $1.3bn battery plant, estimated to create 1,750 of new jobs.
US battery plant to come onstream 2025
The plant, location of which has not been unveiled, will start production in 2025, Toyota said in a statement. The immediate focus will be on producing batteries for hybrid EV and expanding local supply chain.
Ted Ogawa, CEO of Toyota Motor North America, said: "This investment will help usher in more affordable electrified vehicles for US consumers, significantly reduce carbon emissions, and importantly, create even more American jobs tied to the future of mobility."
Toyota said that EVs, including hybrid plug-in such as Prius, currently accounts for around 25% of its car sales in the US. By 2030, the figure is expected to climb to nearly 70%.
Two million zero-emission vehicles by 2030
The world’s biggest carmaker by volume expects sales of its zero-emission vehicles (battery EV and fuel cell EV) to reach two million units by 2030, with US EV sales amounting to 1.5-1.8 million units.
Shares in Toyota fell 1.1% at JPY2,018 in early trade on the Tokyo Stock Exchange.