Toyota Motor Corporation has begun production at its massive $13.9bn battery plant in North Carolina, marking a major milestone in its shift toward hybrid and electric vehicle technology while committing to an additional $10bn in US investment over the next five years.
The Tokyo-based automaker confirmed the launch on Wednesday, saying the plant will initially produce hybrid batteries for vehicles including the Camry, Corolla Cross, and RAV4, as well as for a new, yet-to-be-revealed all-electric, three-row SUV. The batteries will supply Toyota’s factories in Kentucky and its joint Mazda-Toyota facility in Alabama.
“Over the next five years, we are planning an additional investment of $10bn in the US to further grow our manufacturing capabilities, bringing our total investment in this country to over $60bn,” said Ted Ogawa, president of Toyota Motor North America.
Built on a sprawling 1,850-acre site, the North Carolina plant, Toyota’s 11th in the US, will eventually house 14 battery production lines, employ about 5,000 people, and produce up to 30 gigawatt-hours of energy annually at full capacity.
The expansion underscores Toyota’s bet on hybrids, even as rivals push further into fully electric vehicles. The company has long argued for a “multi-pathway” strategy that includes gas engines, hybrids, plug-in hybrids, battery EVs, and hydrogen fuel cell vehicles. “We know there is no single path to progress,” Ogawa said.
The announcement comes just weeks after President Donald Trump, speaking in Japan, praised Toyota’s new investment and urged consumers to “go out and buy a Toyota.” The administration has imposed steep tariffs on imported cars and is rolling back several environmental regulations designed to accelerate EV adoption.
At the plant’s opening, US Transportation Secretary Sean Duffy confirmed that the administration will soon propose easing fuel economy standards, arguing that previous rules set under former President Joe Biden were “too aggressive.” In January, Duffy ordered the National Highway Traffic Safety Administration to rescind those standards, which had aimed to slash fuel consumption for cars and trucks through 2031.
Other automakers, including Volkswagen, have since announced plans to expand hybrid production in response to the new regulatory landscape.
Toyota’s stock rose about 0.4% in midday trading in New York following the announcement.
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