Toyota adds investment to its EV battery factory under construction in the United States, with a total investment reaching $59 billion

Toyota increases investment in US EV battery factory to $59 billion

【PhoneAuto News】On June 1st, PhoneAuto learned that Toyota announced that it will increase its investment in the TBMNC battery factory currently under construction by $2.1 billion due to the expansion of EV demand in the United States and the resulting increase in battery demand. This is Toyota’s second additional investment in the factory, and the total investment is expected to reach $5.9 billion.

Toyota

As one of the world’s largest automakers, Toyota is widely recognized as a latecomer to the electric vehicle market. In 2022, Toyota sold only 24,000 electric vehicles worldwide. In April, Toyota’s new leadership announced plans to accelerate its electric vehicle development strategy and increase global sales of Toyota electric vehicles to 1.5 million units per year by 2026.

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The EV battery factory being built by Toyota in the United States

This time, Toyota has set a target of selling 1.5 million pure electric vehicles globally by 2026. Toyota stated that in order to achieve this goal, it must increase sales in the US market, where pure electric vehicles are entering the popularization period. The background reason for the decision to make additional investments in batteries and strengthen the production foundation of pure electric vehicles is that the US provides preferential policies for locally produced pure electric vehicles. According to the “Inflation Reduction Act,” if pure electric vehicles are not assembled in the United States, Canada, or Mexico, they are not eligible for subsidies. In addition, to qualify for subsidies, the United States also requires a certain proportion of vehicle batteries to be manufactured in North America.

PhoneAuto learned that in the United States, the popular selling price of pure electric vehicles is around $30,000 to $50,000. For automakers, whether they can obtain subsidies directly affects their price competitiveness. Therefore, various companies are investing in pure electric vehicle assembly plants and battery factories. In addition, Volkswagen Group will begin production of pure electric vehicles at its factory in southern Tennessee in 2022, and Hyundai Motor Group has also started partial production.

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