Toyota to Build $1.29 Billion EV Manufacturing Plant

Toyota to Build $1.29 Billion EV Manufacturing Plant

Toyota Motor (NYSE: TM) is set to build a new USD1.29 Billion battery plant for electric vehicles in North Carolina, the company revealed Monday. The plant will be situated at the Greensboro-Randolph industrial “megasite” and is anticipated to create 1,750 new jobs within the U.S. Furthermore, it is committed to achieving carbon neutrality for its vehicles and operations by 2050.

“The future of mobility is electrification and the Greensboro-Randolph Megasite is the ideal location to make that future a reality,” Toyota Motor North Carolina CEO Ted Ogawa said in a statement.

“North Carolina offers the right conditions for this investment, including the infrastructure, high-quality education system, access to a diverse and skilled workforce, and a welcoming environment for doing business,” he added.

Toyota expects the new location to be able to produce sufficient lithium-ion batteries for 200,000 all-electric and plug-in hybrid electric vehicles when manufacturing is set to begin in 2025. Additionally, the company plans to eventually expand battery production to 1.2 million vehicles per year.

The automaker, as well as others within the industry, strives to move the production of EV batteries closer to home as a means of reducing costs and lowering the risk of supply chain issues. The Biden administration has advised companies to bring jobs to the U.S. amid the continuous global shortage of semiconductor chips, which is currently mainly shipped over from Asia.

The company said that it chose North Carolina for the facility because of “renewable energy availability as well as support from local stakeholders, including governments, utilities, partners, and others.”

“Today marks the beginning of a mutually beneficial partnership with the Tar Heel state as we embark on our journey to achieve carbon neutrality and provide mobility for all,” Ted Ogawa, CEO of Toyota Motor North America, said in a release.

Opt-into our eNewsletter NOW! For the Latest Trending Financial News Topics in Cannabis, Tech, Biotechs, Precious Metals, Energy, Renewable Energy and much more!