Toyota to invest $3.4 billion on U.S. automotive batteries through 2030

US Automotive Manufacturing

18/10/2021 11:00

By David Shepardson
    WASHINGTON, Oct 18 (Reuters) - Toyota Motor Corp's  7203.T 
North American unit said Monday it will invest about $3.4
billion (380 billion yen) on U.S. automotive battery development
and production in the United States through 2030.
    The world's largest automaker by volume also said it plans
to establish a new company and build a new U.S. automotive
battery plant together with Toyota Tsusho  8015.T , the
automaker's metals trading arm and a unit of the Toyota Group.
    The new plant, which includes a planned $1.29 billion Toyota
investment through 2031, aims to start production in 2025 and is
expected to create 1,750 new U.S. jobs.
    The funds are part of the $13.5 billion it announced in
September https://www.reuters.com/business/autos-transportation/toyota-spend-over-135-bln-ev-batteries-by-2030-2021-09-07
 it planned to spend globally by 2030 to develop batteries and
its battery supply system. The largest Japanese automaker said
in September it aimed to slash costs of its batteries by 30% or
more by working on materials used and the way the cells are
structured.
    Toyota said the new company will initially focus on
producing batteries for hybrid vehicles. Toyota said it will
later disclose production capacity, the new company's business
structure and the plant site.
    Toyota North America CEO Ted Ogawa said in a statement the
investment "will help usher in more affordable electrified
vehicles for U.S. consumers."
    Automakers around the world are investing billions of
dollars to ramp up battery and electric vehicle production as
they face increasingly stringent environmental regulations.
    Toyota has mounted a lobbying campaign https://www.reuters.com/business/autos-transportation/toyota-says-it-will-fight-us-house-electric-vehicle-tax-plan-2021-09-11
 to try to convince U.S. lawmakers not to include an additional
$4,500 tax incentive for union-made electric vehicles.
    In August, U.S. President Joe Biden signed an executive
order setting a target https://www.reuters.com/business/autos-transportation/biden-set-target-50-evs-by-2030-industry-backs-goal-2021-08-05
 to make half of all new vehicles sold in 2030 zero-emissions
vehicles.
    Detroit's Big Three automakers said in August they aspire
"to achieve sales of 40-50% of annual U.S. volumes of electric
vehicles... by 2030."
    Toyota said last month it "unreservedly signed up to meet
the challenge of making half of the vehicles we sell electric https://www.reuters.com/business/autos-transportation/toyota-says-us-ev-bill-gives-exorbitant-tax-breaks-wealthy-2021-09-13
" by 2030.
    Biden’s 50% goal and the automakers’ 2030 goals includes
battery electric, fuel cell and plug-in hybrid vehicles that
also have a gasoline-engine.

 (Reporting by David Shepardson; editing by Diane Craft)
 ((David.Shepardson@thomsonreuters.com; 2028988324;))