Toyota is making significant strides towards achieving carbon neutrality by investing in the production of electric vehicles (EVs) and batteries in the United States. The company plans to build an all-electric three-row SUV at its Kentucky production facility starting in 2025. Additionally, Toyota will begin producing batteries for its first U.S.-made EV in its North Carolina plant the same year. The battery production facility will receive an additional $2.1 billion investment to support Toyota’s electrified lineup.
Ted Ogawa, president and CEO of Toyota Motor North America, emphasized the company’s commitment to reducing carbon emissions as much as possible and as soon as possible. He believes that customers must have access to a portfolio of options that meet their needs now and in the future. Toyota’s largest U.S. plant, Toyota Kentucky, and its newest plant, Toyota North Carolina, will work together to drive the company into the future with BEV and battery production for its expanding electrified lineup.
Toyota teased its future EVs during a 2021 presentation, including the Bz Large SUV. The company confirmed that the vehicle would be manufactured in the United States, but until now, the specific location had not been disclosed. Selecting Kentucky as the production site makes sense for the brand since it houses the largest Toyota production facility globally. Presently, this facility produces models such as the Camry, Camry Hybrid, and RAV4 Hybrid.
The North Carolina facility tapped for battery building is going to be Toyota’s hub for development and production. When it comes online in 2025, it’ll have six battery production lines including four for hybrid electric vehicles and two more for battery electric vehicles. The news means that in total, Toyota will invest $5.9 billion in the facility.
The moves also lay the groundwork for Toyota to sell a vehicle that would qualify for the Inflation Reduction Act’s full $7,500 tax credit. As the rules sit today, qualification is dependent on how much of a vehicle and its battery components are made in the USA. Building both a vehicle and the battery for that vehicle in the States will take much of the guesswork out of whether or not this future SUV will qualify.
Toyota’s investment in EVs and batteries is a significant step towards achieving carbon neutrality. The company’s commitment to reducing carbon emissions aligns with global efforts to combat climate change. By investing in the production of EVs and batteries in the United States, Toyota is not only contributing to the growth of the EV market but also creating job opportunities and supporting the economy.
