Toyota will build battery plant worth $1.3 billion in US
Toyota Motor Corp has announced that it will build a new battery factory in North Carolina worth $1.29 billion as it is aiming to expand production of hybrid and electric vehicles. The plant will be located in Liberty and it will begin production operations in 2025. Chief administrative officer for Toyota Motor North America Chris Reynolds shared that initially this factory will be capable of supplying lithium-ion batteries for 8,00,000 vehicles annually.
The investment will be made by a new company called Toyota Battery Manufacturing and it is expected to create 1,750 new US jobs, stated a report by Reuters. A couple of months ago Toyota also shared it will establish a new company and build a new US automotive battery plant with Toyota Tsusho, the company's metals trading arm and a unit of the Toyota Group. In this venture, Toyota will hold about a 90 per cent stake in the battery company.
Toyota also shared that the North Carolina factory will eventually expand to at least six production lines for up to 1.2 million batteries annually. The state informed that this new factory will first manufacture batteries for Toyota's hybrid cars and then gradually transition towards electric vehicles in the long run. It also stated that it will reimburse Toyota an amount of up to $79.1 million over 20 years and if the automaker expands the project to $3 billion, it can receive reimbursement up to an estimated $315 million.
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The automaker also recently announced that it will sell zero-emission vehicles only in Europe by 2035. The automaker is also aiming to achieve half its sales in western Europe through zero-emission vehicles by the end of this decade. Though the world's largest automaker is yet to establish a strong foothold in the world of electrification, Toyota is focusing on hybrid vehicles to reach its clean mobility goals.