Toyota pours another 8 billion dollars into US battery production

The total investment for Toyota’s battery plant in the US state of North Carolina thus climbs to 13.9 billion dollars. That is the equivalent of around 13.16 billion euros.

The money will be used to create eight additional production lines for BEV and PHEV batteries. For hybrid vehicles, Toyota will stay with four production lines, already planned in 2021. Already at the time, Toyota mentioned an expansion to at least six production lines for a total of up to 1.2 million vehicles per year by adding two BEV production lines. With Today’s statement, Toyota is now gearing up for a total of ten BEV/PHEV battery lines. By 2030, Toyota aims to reach an annual volume of more than 30 GWh per year in battery production in North Carolina.

“With Today’s announcement, Toyota North Carolina solidifies its position as the company’s epicentre of lithium-ion battery production in North America. Overall, the campus will boast seven million square feet, equating to 121 football fields of battery production,” writes the carmaker.

Today’s statement does not mention a schedule. However, when Toyota revealed its plans in 2021, the start of production was set for 2025, at which point the Greensboro-Randolph Megasite was to supply enough lithium-ion batteries for 800,000 hybrid vehicles. 

As for materials, Toyota Motor North America only recently secured cathode materials from LG Chem for the North Carolina plant. Deliveries are expected to start in 2025, underlining the 2021 date given for the planned start-up of the factory.

Toyota had joined forces with Toyota Tsusho to build the factory. At that time, the planned investment was 1.29 billion dollars, which at the time was about 1.1 billion euros. According to today’s conversion, this is even about 1.2 billion euros. 

Commenting on the US plans, Sean Suggs, President at Toyota North Carolina, says: “Today’s announcement reinforces Toyota’s commitment to electrification and carbon reduction, bringing jobs and future economic growth to the region. We are excited to see the continued energy and support of this innovative manufacturing facility.”

North Carolina Senator Phil Berger called Toyota’s expansion in the state “monumental”.

In addition to its batteries, Toyota will also source batteries from LGES in the US. The Korean company is expected to supply battery modules worth 20 gigawatt-hours annually from 2025, containing NCMA pouch cells with high nickel content, which Toyota will install in new electric cars made in America. The first BEV model in the US is set for launch in 2025 when an electric Toyota SUV with three rows of seats will roll off the production line in Kentucky.

That same year will reportedly also mark the start for Toyota to switch to NACS plugs in the North American market. Unlike other automakers who fully jumped on the Tesla train, Toyota says it “will incorporate the NACS ports into certain Toyota and Lexus BEVs.”

By 2025, the Japanese carmaker intends to introduce 15 battery-electric vehicles worldwide and to have an electrified option available for every Toyota and Lexus model globally.

While earlier plans would usually include fuel-cell electric solutions in Toyota’s model mix, the news indicates a further shift towards battery-electric technology. Only this week, Toyota’s technology chief, Hiroki Nakajima, admitted that the fuel cell electric Mirai “had not been successful” and projected a shift of hydrogen technology from passenger cars to commercial vehicles.

toyota.com, autocar.co.uk (Mirai quote)