Yichuan Cao | NurPhoto | Getty Images
Toyota Motor will build a new $ 1.29 billion electric vehicle battery plant in North Carolina, the company said Monday afternoon.
The company expects the venture to be able to produce enough lithium-ion batteries for 200,000 all-electric and plug-in hybrid electric vehicles when production is slated to begin in 2025. The company said it plans to eventually increase battery production to 1.2 million vehicles per year.
The plant near Greensboro in central North Carolina is expected to create 1,750 jobs in the state, Toyota said. Investments in the facility are planned until 2031.
Toyota and other automakers, who have been slow to invest in all-electric vehicles, are trying to move the production of battery components for electric vehicles closer to home in order to lower costs and reduce the risks of supply chain disruptions.
The Biden administration has also called on companies to provide more U.S. jobs after an ongoing global shortage of semiconductor chips, mostly sourced from Asia, leading to massive plant shutdowns.
The Toyota plant is funded in part by a previously announced investment of about $ 3.4 billion in electrified vehicles that Toyota made in October. But the company does not disclose the location of the facility.
Toyota said it chose North Carolina to build the new plant based on “the availability of renewable energy sources as well as support from local stakeholders including governments, utilities, partners and others.”
“Today marks the beginning of a mutually beneficial partnership with Tar Heel State as we embark on our journey towards carbon neutrality and mobility for all,” said Ted Ogawa, CEO, Toyota Motor North America.
The company expects the new plant to run entirely on renewable energy sources for battery production.
Toyota is committed to achieving carbon neutrality for its vehicles and operations by 2050.