This announcement comes as Toyota, the world's largest automaker by production volume, inaugurated its first overseas battery manufacturing facility in North Carolina. The company aims to increase its total cumulative investment in the US, a key market, to 60 billion USD.

Tetsuo Ogawa, President and Chief Executive Officer of Toyota's North American unit, stated that the new plant and investment mark a historic milestone for the company. This move underscores Toyota's strong commitment to local communities, dealerships, and suppliers.

Toyota Camry hybrid 2025 in the US. Photo: Bako Motors.

Toyota Camry hybrid 2025 in the US. Photo: Bako Motors.

Toyota has invested approximately 13.9 billion USD in the new North Carolina plant. This facility will produce lithium-ion batteries for hybrid, electric, and plug-in hybrid vehicles. The automaker anticipates employing up to 5,100 staff at the site.

This initiative follows Washington's imposition of a 15% tariff on cars imported from Japan in September. This rate, while reduced from the initial 27.5% set by then-President Donald Trump, remains six times higher than the 2.5% tariff applied before April.

Toyota initially announced its plans for hybrid and electric vehicle battery production in December 2021. Batteries from this North Carolina plant are slated to power hybrid versions of the Camry, Corolla Cross, and RAV4, along with an unannounced three-row electric vehicle. Currently, the factory is manufacturing hybrid batteries for existing plants in Kentucky and a joint venture between Mazda and Toyota in Alabama.

Toyota's 11th plant in the US, situated on a 749-hectare site, will have an annual production capacity of 30 GWh at full operation. It will feature 14 production lines dedicated to batteries for plug-in hybrid and electric vehicles.

While Toyota was among the slower automakers to fully embrace electric vehicles, it has rapidly transitioned its best-selling models to hybrid powertrains.

My Anh (according to Japan Today, Reuters)