Toyota will be spending $1.29B to build an electric vehicle battery plant in North Carolina, creating a beachhead for such batteries in the US market.
The plant is scheduled to come online in 2025 and will be called Toyota Battery Manufacturing, North Carolina (TBMNC). It will have four production lines, each capable of delivering enough lithium-ion batteries for 200,000 vehicles—with the intention to expand to at least six production lines for a combined total of up to 1.2 million vehicles per year.
Toyota’s investment in the North Carolina battery plant is part of the automotive giant’s wider commitment to invest $3.4B for automotive battery development and production in the US through to 2030. Its worldwide investment by 2030 is earmarked for $13.5B.
The plant is expected to create 1,750 new jobs.
“The future of mobility is electrification and the Greensboro-Randolph Megasite is the ideal location to make that future a reality,” said Ted Ogawa, CEO of Toyota Motor North America. “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.”
In determining the location for the new plant, Toyota was interested in renewable energy availability as well as support from local stakeholders, including governments, utilities, partners, and others. Candidates for the site were narrowed down based on these requirements and Greensboro-Randolph Megasite met and exceeded these needs because it has an extensive and well-maintained highway system for overland logistics; four international airports and two seaports; onsite rail; a diverse workforce; renewable energy availability; a strong education system and government partnership at both the state and local levels.
North Carolina’s Economic Investment Committee approved a $438.7-million tax incentive package to encourage Toyota to build the factory in the state.
Toyota says it’s committed to using 100% renewable energy at this new facility to produce the batteries. The company is also looking to reach carbon neutrality for its vehicles and operations by 2050.
The automaker will be rolling out its first all-electric line-up next year with plans to build about 70 hybrid or electric models by 2025, of which 15 will be fully electric. It has set a sales target of 8 million partially or fully electrified vehicles by 2030.