TOKYO: Toyota announced on Wednesday that it is spending 730 billion yen (USD 5.6 billion) in Japan and the US to increase the production of batteries for electric vehicles.
Production is set to start between 2024 and 2026. In Japan, the Himeji Plant of Prime Planet Energy and Solutions Co. as well as Toyota facilities and property will receive 400 billion yen (USD 3 billion). Around 325 billion yen (USD 2.5 billion) would be spent in North Carolina's Toyota Battery Manufacturing, it said.
Toyota has been viewed as a slacker in the development of electric vehicles at times due to its success with hybrid vehicles like the Prius and other models that combine an electric motor powered by batteries with an engine. However, as petrol costs rise and environmental concerns increase, it is anticipated that the demand for electric vehicles will increase globally in the upcoming years.
Honda Motor Co., a major South Korean battery manufacturer, and Honda Motor Co., a Japanese rival, announced earlier this week that they were investing USD 4.4 billion in a joint venture in the US to produce batteries for Honda electric vehicles in the North American market. By the end of 2025, mass production of advanced lithium-ion battery cells is expected to begin.
Toyota restated its stance that "there is more than one alternative for reaching carbon neutrality," pointing out how its efforts with hybrid vehicles and hydrogen-powered fuel cells can potentially be solutions. The firm, situated in the central Japanese city of Toyota, claims that the possibilities could vary depending on where a consumer resides.
Toyota stated in a statement that the goal of the investment was to provide it the flexibility to adapt to the needs of its varied consumers in all nations and areas by offering a variety of powertrains and giving customers as many choices as possible. Other manufacturers have also made plans for US battery plants, including Ford Motor Company, General Motors, Hyundai-Kia, Stellantis, and VinFast.
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