Toyota Motor to invest $5.3 billion in Japan and the United States for electric vehicle battery supply

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Toyota Motor Corporation’s bZ compact SUV is pictured after a briefing on the company’s strategies regarding battery electric vehicles in Tokyo, Japan, December 14, 2021. REUTERS/Kim Kyung-Hoon

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Aug 31 (Reuters) – Toyota Motor Corp (7203.T) said on Wednesday it would invest up to 730 billion yen ($5.27 billion) in Japan and the United States to manufacture batteries for vehicles entirely electric, a category of automobiles according to critics. he was slow to kiss.

When the additional facilities come online between 2024 and 2026, Toyota’s battery production capacity in the two countries will have increased by 40 gigawatt hours, the company said, giving no current figures for comparison.

“This investment aims to enable Toyota to flexibly meet the needs of its different customers in all countries and regions by offering multiple powertrains and offering as many options as possible,” he said in a statement. .

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Some green investors and environmental groups have said the company should accelerate the introduction of fully electric (or “battery electric”) vehicles, rather than clinging to the internal combustion engine in powertrain configurations such as the ‘hybrid. Read more

Toyota is the latest in a series of companies to announce major battery investments in the United States, where a transition to all-electric automobiles could accelerate as the country discourages the use of gasoline-powered vehicles and diesel fuel and tightens eligibility for tax credits.

Main rival Honda Motor Co (7267.T) said on Monday that it and Korean battery supplier LG Energy Solution Ltd (373220.KS) would build a $4.4 billion lithium-ion battery plant for electric vehicles. in the USA.

In its statement Wednesday, Toyota said it would invest about 400 billion yen in Japan. The money would go to two of its own factories, one owned by its joint venture with Panasonic Holdings Corp (6752.T) – Prime Planet Energy & Solutions Co – and a third that is being built for another joint venture with Panasonic. .

Additionally, about 325 billion yen would be invested in Toyota Battery Manufacturing in North Carolina.

Automakers around the world are spending billions of dollars to ramp up production of batteries and electric vehicles in the face of tougher environmental regulations.

President Joe Biden signed a $430 billion climate, healthcare and tax bill this month that would make electric vehicles assembled outside of North America ineligible for tax credits. . Read more

California last week announced a plan to ban sales of new cars powered solely by internal combustion engines by 2035. read more

Last year, Toyota committed 8 trillion yen to electrifying its car model lineup by 2030, half of which is earmarked for developing fully electric vehicles. Still, it expects annual sales of these cars to reach just 3.5 million units by the end of the decade, about a third of its current total volume.

In June, Toyota said it had recalled more than 2,000 of its first mass-produced electric vehicle, the bZ4X SUV, less than two months after the model was unveiled, due to a risk of wheel detachment. Read more

($1 = 138.43 yen)

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Reporting by Satoshi Sugiyama in Tokyo and Baranjot Kaur in Bangalore; Editing by Subhranshu Sahu and Rashmi Aich

Our standards: The Thomson Reuters Trust Principles.

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