Toyota announced on Monday that it will invest $3.4 billion to boost automotive electrical batteries production in the United States over next 10 years to meet the growing demand for green vehicles.
“Toyota announced today that it will invest approximately $3.4 billion (380 billion yen) in automotive batteries in the United States through 2030. Specifically, the investment is for developing and localizing automotive battery production, including those for battery electric vehicles,” Toyota said in a press release.
Toyota North America will build the new automotive battery plant in the United States to start production as early as in 2025 that will require an $1.29 billion investment through 2031 to develop land and facilities resulting in additional 1,750 jobs, the release said.
The new initiative comes in response to a growing demand for so-called “environmentally friendly” vehicles around the world with Europe leading the charts of new electric vehicles sales and the United States falling behind, according to Pew Research data from June.
The Biden administration has pledged to alter this situation by creating multiple incentives for both manufacturers and buyers of electrical vehicles.
In June, the Kyodo news agency reported that Toyota will make all its factories across the world carbon neutral by 2035.