Toyota invests US$2.1 billion to increase production capacity at U.S. battery plants to seize growing demand for electric vehicles

News on June 1, Toyota Motor announced today that it will start producing electric vehicles in 2025 at its factory in Kentucky, USA. This marks Toyota’s first domestic production of electric vehicles in the United States. In order to meet the growing market demand, Toyota Motor has also decided to invest an additional US$2.1 billion (approximately 14.931 billion yuan) to increase the production capacity of the US battery factory under construction.

It is understood that the Toyota plant in Kentucky will be responsible for producing the new three-row SUV model, and its on-board batteries will be supplied by Toyota’s battery plant built in North Carolina. With this additional investment, the total investment in the project will reach US$5.9 billion (approximately 41.949 billion yuan).

In response to the U.S. Inflation Control Act passed in August last year, which provides tax breaks of up to $7,500 (approximately 53,325 yuan) for each electric vehicle assembled in the United States, Toyota has accelerated its expansion in North America. The pace of building an integrated production system for electric vehicles.

Toyota Motor has previously set a goal of selling 1.5 million electric vehicles annually in the global market by 2026, and announced that it will invest 5 trillion yen in electric vehicle-related projects in 2023. However, compared with major competitors such as Tesla and BYD, Toyota's global electric vehicle sales in 2022 will be only 24,000 units, which has obvious competitive disadvantages.

Toyota’s establishment of an electric vehicle production line in the United States aims to further expand its market share in the field of electric vehicles and meet the growing global demand for electric vehicles. With Toyota's investment and efforts, we can expect greater success in the future.

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