Toyota is ramping up its electrification efforts including the construction of a $2.1 billion electric vehicle (EV) battery factory in North Carolina.
Toyota will also assemble a three-row battery electric SUV at its Kentucky car plant in 2025 using batteries from the new North Carolina plant.
The North Carolina battery hub will develop and produce lithium-ion batteries that will be used in current and future generations of EVs. Production is slated to begin in 2025 with six battery production lines, four for hybrid EVs and two for battery EVs.
Meanwhile, the electric SUV will be the first battery EV to ever be assembled in the U.S. from Toyota.
Why it matters
Toyota joins a growing league of automotive OEMs that are constructing new battery plants in North America as the automotive industry continues its largest transition in history to electrification.
Late in 2022, Ford and Korean electronics giant SK broke ground on their joint BlueOval SK Battery park in Kentucky. The EV battery factory will produce lithium-ion batteries for Ford and Lincoln EVs.
Also last year, LG and Honda pledged to build a lithium-ion battery plant in North America with the goal of production by 2025.
Additionally, automotive OEMs are rapidly investing in raw material companies and battery developers to secure supplies for future production of EVs.
