Toyota is pledging an additional $8 billion to the US battery maker to accelerate its push for electric vehicles

Toyota is pledging an additional $8 billion to the US battery maker to accelerate its push for electric vehicles

The Toyota logo is seen during the New York International Auto Show, in Manhattan, New York City, US, April 5, 2023. REUTERS/David “Dee” Delgado/File Photo Acquires License Rights

Oct 31 (Reuters) – Toyota Motor (7203.T) said on Tuesday it would boost investment by $8 billion and add about 3,000 jobs at its electric vehicle battery manufacturing plant in North Carolina, accelerating the Japanese automaker’s push to electrify its group.

The company, which plans to provide electric options for all its models by 2025, said the latest move will bring its total investment in the plant to about $13.9 billion and job opportunities to more than 5,000.

Legacy automakers such as Ford Motor (FN) and General Motors (GM.N) are racing to increase their production of electric vehicles and close the gap with market leader Tesla (TSLA.O), although the two Detroit-based companies have reduced their production. Their investment plans after reaching expensive new contract agreements with the United Auto Workers union.

Toyota did not disclose details of the investment and was not immediately available for further comment.

Unlike its global counterparts, Toyota had previously bet on hybrids and hydrogen fuel cell vehicles rather than battery electric vehicles, but the world’s best-selling automaker this year announced a pivot, with plans to commercialize advanced batteries and adopt casting technology that… Tesla invented it.

Other companies such as Samsung SDI Co (006400.KS), Panasonic and Stellantis NV (STLAM.MI) – Chrysler’s parent company – are also planning to establish a base in the United States to develop their own battery factories.

Toyota’s North Carolina plant is scheduled to begin operations in 2025 and will be the company’s first automotive battery plant globally.

It will contain six battery production lines, four supporting hybrid vehicles such as the Prius, and two additional lines to support battery-powered electric vehicles.

North Carolina Center

North Carolina is emerging as a leading hub for electric vehicle and battery manufacturing, with new investments planned by companies ranging from Redwood Materials to Vietnam’s Vinfast.

“North Carolina’s transition to a clean energy economy creates better-paying jobs that will support our families and communities for decades to come,” North Carolina Gov. Roy Cooper said Tuesday, following news of Toyota’s increased investment.

The state will also host a $650 million battery factory that India’s Epsilon Advanced Materials (EAM) plans to open in 2026, the company announced last week, and the facility could eventually power up to 1.1 million electric vehicles in the United States.

(Reporting by Nathan Gomes in Bengaluru; Preparing by Mohammed for the Arabic Bulletin) Editing by Savio D’Souza and Devika Simnath

Our Standards: The Thomson Reuters Trust Principles.

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