Published on September 12th, 2022 | by Subhash Nair0
Toyota Is Investing US$5.6B In Battery Production In US And Japan
Toyota gets serious about automotive battery production with this new announcement.
After years of dragging their feet on battery electric vehicles (BEVs), Toyota Motor Corporation has finally decided to put some serious plans in place.
Last year, they unveiled a fleet of concept electric vehicles to cater to every market segment. Now, they’re announcing their investment plans for automotive battery supply.
The Japanese automotive conglomerate will invest up to 730 billion yen, or approximately US$5.6 billion, in Japan and in the United States toward supplying automotive batteries for BEVs. The aim is to begin battery production between 2024 and 2026.
With this investment, Toyota will have a battery production capacity of 40 GWh between their facilities in Japan and the United States. Toyota also says that their battery production will take advantage of the famed Toyota Production System for maximum efficiency.
The plants that will primarily be receiving upgrades include the Himeji Plant of Prime Planet Energy & Solutions Co. Ltd., Toyota Battery Manufacturing, North Carolina as well as in Toyota plants and property in Japan.
Toyota currently has one BEV for sale, the bZ4X. This was co-developed with Subaru.
Here’s the press release with more.
Toyota Motor Corporation (Toyota) has decided to invest up to 730 billion yen (approximately $5.6 billion) in Japan and the United States toward supplying automotive batteries for battery electric vehicles (BEVs), for which demand is growing, and aims to begin battery production between 2024 and 2026.
This investment is aimed at enabling Toyota to flexibly meet the needs of its various customers in all countries and regions by offering multiple powertrains and providing as many options as possible.
With this investment, Toyota intends to increase its combined battery production capacity in Japan and the United States by up to 40 GWh. By utilizing the Toyota Production System and building production lines that are more efficient than ever, Toyota also intends to further strengthen its competitiveness and invest in the training of personnel engaged in battery production and the passing down of monozukuri manufacturing skills.
In Japan, a total of approximately 400 billion yen will be newly invested in the Himeji Plant of Prime Planet Energy & Solutions Co., Ltd. (PPES) and in Toyota plants and property, while in the United States, approximately 325 billion yen (approximately 2.5 billion dollars) will be newly invested in Toyota Battery Manufacturing, North Carolina (TBMNC; owned 90% by Toyota Motor North America, Inc. and 10% by Toyota Tsusho Corporation) toward increasing automotive battery production.
Toyota intends to continue its efforts to build a supply system that can steadily meet the growing demand for BEVs in various regions, including the supply of automotive batteries from its partners.
Toyota believes that there is more than one option for achieving carbon neutrality. It also believes that the means of reducing CO2 emissions as much as possible and as quickly as possible while protecting the livelihoods of its customers vary greatly depending on the country and region.
With such in mind, Toyota will continue to make every effort to flexibly meet the needs of its various customers in all countries and regions by offering multiple powertrains and providing as many options as possible.