Wedoany.com Report-Nov. 13, Toyota Motor announced on Wednesday that it has started production at its $13.9 billion battery plant in North Carolina, marking a major step in its plan to expand hybrid and electric vehicle production. The Japanese automaker also confirmed plans to invest an additional $10 billion over the next five years in its U.S. manufacturing operations.

A Toyota logo is seen at the New York International Auto Show Press Preview, in Manhattan, New York City, U.S., March 27, 2024.

The North Carolina facility, Toyota’s 11th manufacturing plant in the United States, spans 1,850 acres (749 hectares) and will eventually employ about 5,000 workers. At full capacity, the plant will produce up to 30 gigawatt-hours (GWh) of batteries annually through 14 production lines for hybrid, plug-in hybrid, and full electric vehicles.

Toyota first announced the project in December 2021, outlining its goal to manufacture batteries for hybrid and electric models. The batteries produced at the new facility will be used in hybrid versions of the Camry, Corolla Cross, RAV4, and a forthcoming all-electric three-row sport utility vehicle. The plant is currently supplying hybrid batteries to Toyota’s factories in Kentucky and to the Mazda-Toyota joint venture plant in Alabama.

Ted Ogawa, President of Toyota Motor North America, said: “Over the next five years, we are planning an additional investment of $10 billion in the U.S. to further grow our manufacturing capabilities, bringing our total investment in this country to over $60 billion.” He emphasized that Toyota’s long-term manufacturing expansion in the United States is part of its commitment to energy-efficient and low-emission vehicle technologies.

During a visit to Japan last month, U.S. President Donald Trump mentioned Toyota’s investment, saying: “Go out and buy a Toyota.” The U.S. government has recently discussed easing certain fuel economy standards and revising electric vehicle incentive policies. Transportation Secretary Sean Duffy stated that the administration intends to propose new fuel economy standards soon, arguing that earlier regulations were overly stringent.

Duffy previously signed an order in January directing the National Highway Traffic Safety Administration to rescind fuel economy standards issued under the previous administration for the 2022–2031 model years, which had aimed to significantly cut fuel consumption from cars and trucks.

Toyota has been slower than some competitors in transitioning fully to electric vehicles but has accelerated efforts to expand hybrid production, adapting its best-selling models to meet shifting market demand. “We know there is no single path to progress,” Ogawa said. “That’s why we remain committed to our multi-pathway approach, offering fuel-efficient gas engines, hybrids, plug-in hybrids, battery electrics, and fuel cell electrics.”

Other global automakers, including Volkswagen (VOWG.DE), have also indicated plans to increase hybrid vehicle offerings amid changes to government policies on electric vehicle tax credits and emissions-related incentives. Toyota’s latest investment highlights its strategy to strengthen U.S. manufacturing while advancing diverse powertrain technologies for future mobility.