Toyota will build a new $1.29 billion automotive battery manufacturing plant for electrified vehicles in North Carolina, the company announced Monday afternoon.
The battery manufacturing plant, to be named Toyota Battery Manufacturing, is set to open in 2025 at the North Carolina Greensboro-Randolph “Megasite,” the company said in a statement.
Toyota expects the facility to have four production lines, each capable of producing enough lithium-ion batteries for 200,000 all-electric and plug-in hybrid electric vehicles, when production begins. Toyota hopes to later expand this to at least six production lines to create a combined total of up to 1.2 million vehicles per year.
The new plant is expected to create 1,750 jobs in the state and will be the first to produce automotive batteries for Toyota in North America, Toyota said. The investment in the facility, which includes funds to develop land and facilities, is being made by Toyota and Toyota Tsusho and is scheduled through 2031.
The $1.29 billion investment will be partially funded from a total investment of approximately $3.4 billion into automotive batteries that Toyota previously announced on Oct. 18. That $3.4 billion figure is part of a global total of around $13.5 billion that Toyota has set aside for investment in battery development and production.
“The future of mobility is electrification and the Greensboro-Randolph Megasite is the ideal location to make that future a reality,” said Ted Ogawa, CEO of Toyota Motor North America, on Monday.
“North Carolina offers the right conditions for this investment, including the infrastructure, high-quality education system, access to a diverse and skilled workforce, and a welcoming environment for doing business. Today marks the beginning of a mutually beneficial partnership with the Tar Heel state as we embark on our journey to achieve carbon neutrality and provide mobility for all,” Ogawa added.
The announcement comes as Toyota attempts to reach its goal of carbon neutrality by 2050, in line with President Joe Biden’s efforts to tackle climate change. Toyota expects the plant to be powered completely by renewable energy to produce the batteries.
Meanwhile the company, which is focusing on hybrid electric vehicles, continues to stave off competition from electric vehicle world leader Tesla.
On Monday, Tesla CEO Elon Musk criticized the Biden administration’s proposal to give union-made, U.S.-built electric vehicles a $12,500 tax incentive under the Build Back Better Agenda.
The White House has set a goal for electric vehicles, including battery, plug-in hybrid, or fuel cell electric vehicles, to make up 50 percent of all new car sales by the end of 2030 as part of its trillion-dollar agenda.
However, Musk, during a virtual appearance at The Wall Street Journal’s CEO Council Summit, said he would just “can this whole bill,” adding that he believes the proposal would ultimately worsen the country’s budget deficit.
