Toyota invests in US battery manufacturing business

Toyota has announced it will invest in a US automotive battery manufacturing plant in the United States as its latest business venture

The leading automotive manufacturer is one of many carmakers with a vested interest in the production of batteries for new electric vehicles. Toyota will now invest in a new arm of the business to increase the production capacity in the United States. 

With a US$3.4bn investment in the industry, Toyota has plans to set up a battery production line in the US by the end of 2030, which incorporates a US1.29bn spend on a new plant that is expected to introduce 1,750 new jobs to the market. The funds for its US operations come from a wider global spend budget that was announced in September this year, amounting to US$13.5bn by 2030, and the group also announced that it had plans to cut the costs of its vehicle batteries by a minimum of 30% through careful design and development. 

While Toyota is yet to disclose the production capacity of the new facility, it has said that the initial quantity will be supplied to its hybrid car manufacturer units. Ted Ogawa, Chief Executive Officer at Toyota North America, says that the investment in the emerging technology will ‘help usher in more affordable electrified vehicles for U.S. consumers’, supporting the deadline for the nationwide initiative, set by President Joe Biden, to eliminate half of the petrol-and-diesel-powered vehicles from showrooms. 

Continuous development of its electrified portfolio 

Up until the announcement Toyota has shown commitment to the decarbonisation of its vehicle production in many other ways: 

  • The company has sold over 18.7 million electric vehicles (EVs), 4.5 million in the US
  • Toyota expects to increase its EV sales volume to 70% of its portfolio by 2030
  • The carmaker is continuously expanding its EV portfolio, with hybrid vehicles, plug-in hybrid vehicles, fuel-cell-powered and battery electric cars
  • The firm expects to sell two million zero-emission vehicles and up to 1.8 million EVs in the US by 2030

For more business insights, check out the latest issue of Business Chief Magazine.


Featured Articles

Top 10 wealthiest billionaires in the US

Business Chief provides a rundown of the top 10 richest billionaires in the US based on the most recent Forbes 400 list, which is published every year

Top 10 easiest countries in the world to do business

Business Chief takes a look at the top 10 places in the world to do business, according to TMF Group's Global Business Complexity Index (GBCI) for 2023

Patagonia Chair Charles Conn on becoming an imperfectionist

Entrepreneur and Patagonia Chair Charles Conn talks to Business Chief about rethinking strategy amid uncertainty, and why an imperfectionist approach works

Top 10 most valuable brands in the world – Amazon to TikTok

Corporate Finance

Four priorities for new Twitter CEO Linda Yaccarino

Leadership & Strategy

Top 10 shifts transforming organisations – McKinsey & Co

Leadership & Strategy