Toyota invests $5.6 billion on U.S. and Japanese EV batteries

Toyota will invest $5.6 billion to create electric vehicle batteries in Japan and the U.S.

The automaker has been criticized for its tardy adoption of electric vehicles, but it plans to produce batteries between 2024 and 2026. Its investments will boost battery output in Japan and the US by 40 GWh.

400 billion yen ($2.8 billion) will go to Prime Planet Energy & Solutions' Himeji Plant and other Toyota plants and property. Toyota Motor North America owns 90% of Toyota Battery Manufacturing North Carolina, and Toyota Tsusho owns 10%.

Toyota is establishing a supply infrastructure to fulfill the increased demand for BEVs in diverse locations, including partner batteries. It will also invest in training battery production workers to improve their abilities.

Toyota said in a news release that achieving carbon neutrality will require a variety of powertrain technologies, not just EVs.

Toyota believes there are multiple carbon neutrality options. “It also believes that the best ways to reduce CO2 emissions while maintaining customers' lives vary by country and region.

Toyota will continue to offer several powertrains and options to fulfill the needs of customers in all nations and areas.