Toyota to invest $5.6b in EV batteries, but says EVs are not the ‘only solution’

Toyota has announced its decision to invest up to 730 billion Yen (approx. $5.6 billion) in Japan and United States toward supplying EV batteries. The company aims to begin battery production between 2024 to 2026. To cater to the needs of its customers in all countries and regions, Toyota says it will be offering multiple powertrains and providing as many options as possible.

With the $5.6 billion investment, Toyota targets to achieve a combined annual battery production capacity of 40 GWh from Japan and US. For context, Chinese battery giant CATL’s battery production capacity was 170 GWh in 2021, while LG Chem reported around 155 GWh for the same year.

Of the 730 billion Yen, approximately 400 billion will be invested in the Himeji Plant of Prime Planet Energy & Solutions Co., Ltd. (PPES) and in Toyota plants and property. As for the United States, about 325 billion Yen (approx. $2.5 billion) will be invested in Toyota Battery Manufacturing, North Carolina toward increasing automotive battery production.

Also from the land of the rising sun is Honda, which has joined forces with Korea’s LG Energy to establish a $4.4 billion battery plant in the United States. The one plant itself targets a 40 GWh annual battery production capacity, equalling Toyota’s combined targeted numbers for Japan and US. Honda and LG Energy’s battery facility will start mass production by the end of 2025.

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Toyota believes that there is more than one option for achieving carbon neutrality as evidently seen in their hydrogen fuel cell and hydrogen combustion engine endeavours. It also believes that the means of reducing CO2 emissions as much as possible and as quickly as possible while protecting the livelihoods of its customers vary greatly depending on the country and region.

With such in mind, Toyota will continue to make every effort to flexibly meet the needs of its various customers in all countries and regions by offering multiple powertrains and providing as many options as possible.

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