Automotive giant Toyota (NYSE:TM) said Wednesday it would invest an extra $2.5 billion in a U.S. facility that will manufacture batteries for both hybrid electric and battery electric vehicles.
Toyota Battery Manufacturing North Carolina is set to start operations in 2025, with the firm stating that total investment in the plant will now amount to $3.8 billion.
The additional investment in the U.S. is part of a wider investment of up to $5.6 billion in battery production, with Toyota noting that demand for battery electric vehicles was growing.
To this end, the business said it would aim to ramp up “combined battery production capacity” in the U.S. and Japan by as much as 40 gigawatt hours.
As well as diesel and gasoline vehicles, Toyota is known for its hybrid and hydrogen fuel cell offerings. It is also attempting to make headway in the increasingly competitive battery-electric market, where firms like Tesla (NASDAQ:TSLA) and Volkswagen are jostling for position.
This has not been without its challenges. In June 2022, Toyota issued a safety recall for more than 2,000 of its all-electric SUV, the bZ4X.
Toyota may be looking to invest billions in EV battery production, but on Wednesday the business stressed it would also “continue to make every effort to flexibly meet the needs” of customers “in all countries and regions by offering multiple powertrains and providing as many options as possible.”
Indeed, the website of Toyota Europe states that the “internal combustion engine continues to be the most popular means of powering vehicles and it will continue to play a role for the next 20 to 30 years.”
TM shares gained 44 cents to $150.61.
