Toyota Commissions New Battery Factory And Pledges $10 Billion Investment In US

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Toyota — yes, that Toyota — announced this week the start of production at its new battery plant in Liberty, North Carolina. It is Toyota’s eleventh US plant and the company’s first battery plant outside of Japan. The nearly $14 billion facility will create up to 5,100 new American jobs.

In a press release, it said, “Building on its unwavering commitment to the US, Toyota announced an additional investment of up to $10 billion over the next five years to support future mobility efforts. This will bring the company’s total US investment to nearly $60 billion since beginning operations here nearly 70 years ago.”

Ted Ogawa, the CEO of Toyota Motor North America, said, “Today’s launch of Toyota’s first US battery plant and additional US investment up to $10 billion marks a pivotal moment in our company’s history. Toyota is a pioneer in electrified vehicles, and the company’s significant manufacturing investment in the US and North Carolina further solidifies our commitment to team members, customers, dealers, communities, and suppliers.”

The 1,850 acre mega site in North Carolina can produce 30 GWh of batteries a year at full capacity. It will serve as Toyota’s hub for developing and producing lithium-ion batteries needed for its ever-growing portfolio of electrified vehicles. The state-of-the-art facility will house 14 battery production lines for hybrid electric vehicles, battery electric vehicles, and plug-in hybrid electric vehicles, making it an historical investment for Toyota and a substantial economic boost for the state of North  Carolina.

“Today marks a historic milestone as Toyota begins battery production right here in North Carolina,” said Governor Josh Stein. “This groundbreaking investment will create more than 5,000 new jobs for North Carolinians and will strengthen our commitment to leading the way in both the automotive supply chain and the clean energy economy.”

Batteries For “Electrified” Cars

Batteries assembled at Toyota North Carolina are scheduled to power the Camry hybrid, Corolla Cross hybrid, RAV4 hybrid, and a yet-to-be-announced all-electric 3-row battery electric vehicle. That car will be the first fully electric car to be manufactured in the US by Toyota.

Currently, the factory provides hybrid powertrains to Toyota’s assembly facility in Kentucky and Mazda Toyota Manufacturing in Alabama. Additional production lines at Toyota North Carolina are set to launch by 2030.

“We’re excited to see this innovative facility come to life and to provide cutting-edge careers for more than 5,000 North Carolinians,” said Don Stewart, president of Toyota North Carolina. “Today’s celebration would not be complete without thanking our team members. Their dedication, commitment, and resolve have truly led us to this historic moment. We also are grateful for the support shown to us by the State of North Carolina, Randolph County, and the greater Triad region, a place we are all proud to call home.”

Supporting The Community

The company remains steadfast in its commitment to being the best employer in town by supporting workforce development and educational initiatives. Through partnerships with schools and educators across the region, Toyota is developing the Triad’s future workforce.

During the ceremony, Toyota announced the second phase of Driving Possibilities in Guilford County Schools and the Asheboro City School District, with a Toyota USA Foundation grant of an additional $2.7 million. Driving Possibilities is a national STEM education initiative that brings together community, education leaders, local and national nonprofits, and industry partners to create programs that strengthen communities and prepare young people for future STEM careers.

“This incredible gift will provide our students and their families with life-changing opportunities,” said Wendy Poteat, president and CEO of shift_ed, a nonprofit regional leader connecting education to workforce development, and coordinating partner for the NC Driving Possibilities program.

“Toyota has become a generous supporter and dedicated stakeholder in enriching our school districts by inspiring innovation and nurturing curiosity and creativity in our learners from classroom to career. Programs like these are essential in closing opportunity and exposure gaps, empowering students to reach their full potential.” Driving Possibilities is funded by the Toyota USA Foundation, with additional support provided by Toyota Motor North America (TMNA) and Toyota Financial Services (TFS).

Hybrid Sales Are Up

Toyota has sold more than 6.6 million hybrid, plug-in hybrid, fuel cell, and battery electric vehicles in the US since 2000. Toyota currently assembles 11 hybrid and plug-in hybrid models in the US as part of the company’s commitment to reducing carbon emissions and its philosophy of building where it sells.

The new facility is Toyota’s first in-house battery plant outside of Japan. It was first announced in December 2021 amid the Biden administration’s push to onshore production of batteries for hybrids and all-electric vehicles, but, of course, no one at the commissioning ceremony bothered to mention the pathway to sustainable transportation the prior administration created.

The company says the demand for hybrid vehicles is up strongly, which makes Toyota look absolutely prescient by refusing to embrace battery electric cars when other US manufacturers were going all in on them. Toyota currently controls more than half of the market to hybrid vehicles in the US, according to data supplied by Motor Intelligence. Sales of Toyota vehicles in the US through the third quarter of this year were up 9.9 percent to more than 1.3 million vehicles, CNBC reports.

Future Toyota Cars

A three-row EV would certainly hit the sweet spot in the US these days, where everyone wants to be able to haul an entire basketball team and all their equipment. Kia and Hyundai both have electric three-row vehicles, so it makes sense for Toyota to jump into that space as well.

But there has been speculation recently about a possible battery electric version of the car that has been a mainstay in the Toyota lineup since LBJ was in the White House — the Corolla. At the time of this year’s Mobility Show in Tokyo, Toyota put out a short video about its future products and some sharp-eyed viewers swear there is a next-generation Corolla shown with a charging door on the left front fender. See if you can spot it.

While Toyota may say this is a concept car, InsideEVs thinks it is very close to being production ready. It says, “The greenhouse looks large enough to accommodate actual people and doesn’t have the chop-top look that some sedans have in concept form, but then lose for production in the quest for interior headroom. It also has side mirrors, normal-looking door handles and a charging port on the front left fender. The light clusters also don’t look too far-fetched for production.”

Could some of those batteries manufactured in North Carolina be destined for a plug-in hybrid or battery electric Corolla? Maybe not now, while the political winds are blowing so strongly against anything and everything that smacks of “woke” ideas like reducing greenhouse gas emissions.

But if the wheel turns again in the near future, American buyers might be interested in a car with Prius-like fuel economy that comes in a familiar package. $14 billion seems like a lot of money for a battery factory that only makes wimpy little 1.3 kWh batteries for hybrid cars. Toyota is playing its cards close to the vest, but may have an ace or two up its sleeve.