Toyota plans to invest up to 730 billion yen to meet market needs for batteries
With the rise of electric vehicles (EVs) and battery electric vehicles (BEVs), the need for raw materials and batteries has reached an unprecedented high and as such more and more companies are doing everything they can to meet these demands. The latest company to do this is none other than, Japanese carmaker, Toyota.
ACNNewswire reported that today on 2 September 2022, Toyota Motor Corporation (Toyota) will be investing up to 730 billion yen, or roughly USD5.6 billion into Japan and the United States to supply batteries for BEVs. The company also aims to start producing batteries sometime between 2024 and 2026.
The goal of this investment is to ensure Toyota can comfortably meet the needs of their customers globally as Toyota does have presence in many countries and regions and many regions in the world are shifting to electric batteries. With this investment, Toyota can diversify their supply of different powertrains and provide more options.
Toyota hopes that this investment will help the company increase its total production capacity of batteries in both Japan and the United States by up to 40Gwh, yes you read that right, giga-watts per hour, hence the “G” in the number.
Toyota plans to achieve this goal by using their own production system and building more efficient production lines. Toyota will also be strengthening their competitiveness by investing in training for all personnel involved in producing batteries and passing down the monozukuri manufacturing skills.
Toyota’s investment of batteries will be divided into two with roughly 400 billion yen being invested into Toyota plants and the Himeji plant of Prime Planet Energy & Solutions Co., Ltd. (PPES).
The remaining 325 billion yen, which translates to about USD2.5 billion will go towards increasing automotive battery production in the United States to Toyota Battery Manufacturing, North Carolina (TBMNC) which Toyota Motor North America, Inc. Owns 90 percent of and 10 percent owned by Toyota Tsusho Corporation.
Toyota is hoping these systems will be a sustainable supply chain to help meet the growing demand for batteries worldwide and that there is more than one way to achieve carbon neutrality. This system will be a quick way for them to reduce carbon emissions and improve the livelihood of their customers.
This move is proof that Toyota is committed to its customers and meets the needs of every market and region while providing multiple options to do everything. The full article from ACNNewswire is linked here.
