RALEIGH, N.C. — Toyota will invest an additional $8 billion in the hybrid and electric vehicle battery factory it’s constructing in North Carolina, more than doubling its prior investments and expected number of new jobs, the company announced Tuesday.
The Japanese automotive manufacturer projects the new investment will create about 3,000 additional jobs, bringing the total to more than 5,000 jobs, when its first U.S. automotive battery plant begins operations near Greensboro in 2025. The plant will serve as Toyota’s epicenter of lithium-ion battery production in North America and will be a key supplier for the Kentucky-based plant tasked with building its first U.S.-made electric vehicles, the company said.
Toyota’s fourth and largest investment in the North Carolina facility brings its total investment to about $13.9 billion to help meet its goal of selling 1.5 million to 1.8 million electric or hybrid vehicles in the U.S. by 2030. It will also add eight new production lines for electric and plug-in hybrid batteries.
Legacy automakers such as Ford Motor (F.N) and General Motors (GM.N) have been racing to ramp-up their EV output and close the gap with market leader Tesla (TSLA.O), although both Detroit-based companies have scaled back their investment plans after reaching expensive new contract agreements with the United Auto Workers union.
Unlike global peers, Toyota had earlier bet on hybrids and hydrogen-fuel cell vehicles rather than battery EVs, but the world’s top-selling automaker this year announced a pivot, with plans to commercialize advanced batteries and adopt die-casting technology pioneered by Tesla.
Other companies such as Samsung SDI Co (006400.KS), Panasonic and Chrysler-parent Stellantis NV (STLAM.MI) also plan to set up base in the U.S. to develop their battery plants.