Japanese automaker Toyota will invest billions in producing batteries for electric vehicles in Japan and the United States. With the sale of batteries, the largest car manufacturer in the world wants to respond to the increasing demand for cleaner transport worldwide.
Toyota is allocating up to 730 billion yen, about 5.3 billion euros, for the production of batteries that the company expects to start between 2024 and 2026. “This investment is intended to enable Toyota to meet the different needs of its customers in all countries and regions by offering multiple types of batteries,” the company said.
While Toyota sees hybrid vehicles and hydrogen-powered cars as part of a green future, the company has accelerated its drive to electrify more of its models in recent months. In December, the company pledged to be ready to sell only zero-emission cars in Europe by 2035, in line with the European Union’s target.
With the investment, Toyota aims to increase its battery production capacity in Japan and the US by up to 40 gigawatts per hour. In Japan, approximately 400 billion yen will be invested in Prime Planet Energy & Solutions’ Himeji city plant and Toyota’s own plants. In the US, the company invests 325 billion yen (2.3 billion euros) in a factory in North Carolina.
Automakers and battery makers worldwide are rushing to ramp up battery production to meet strong demand. Japan’s Panasonic, which supplies batteries to US electric car maker Tesla, is in talks to build another US factory worth about $4 billion. South Korean battery manufacturers also have a series of plans for new plants in the US, including four for General Motors, two for Stellantis, and three for Ford.