Toyota Launches Battery Production in North Carolina

Toyota has officially started production at a new $13.9 billion battery manufacturing plant in North Carolina. Additionally, the company is planning to invest another $10 billion into its U.S. operations over the next five years. This investment will bolster Toyota’s well-known hybrid vehicle lineup.

The recent announcement, first reported by Supply Chain 247, marks a significant milestone for Toyota as it opens its first battery factory outside of Japan. The facility occupies an extensive 1,850-acre site in Liberty, North Carolina, and is expected to generate around 5,100 new jobs while reaffirming Toyota’s commitment to its U.S. workforce, customers, dealers, communities, and suppliers.

Ted Ogawa, CEO of Toyota Motor North America, highlighted that the North Carolina plant represents a crucial moment for the company. He stated, “Today’s launch of Toyota’s first U.S. battery factory and up to $10 billion in additional investment in the U.S. marks a pivotal moment in our company’s history.” Ogawa reinforced Toyota’s role as a leader in electric vehicles and noted the significant manufacturing investments as measures to strengthen ties with their various stakeholders.

Transportation Secretary Sean Duffy praised the announcement, viewing it as a positive indicator of the administration’s efforts to rejuvenate manufacturing and create quality jobs while pouring billions into the economy. Duffy emphasized that the current leadership under President Donald Trump makes the U.S. welcoming to investments from global firms like Toyota.

Once fully operational, the North Carolina facility will produce 30 gigawatt hours of lithium-ion batteries each year, catering to Toyota’s hybrid, plug-in hybrid, and all-electric models. The plant is designed with 14 production lines and will supply batteries for popular models like the Camry Hybrid, Corolla Cross Hybrid, and RAV4 Hybrid.

Along with the plant’s launch, Toyota has committed to an extra $10 billion investment in its U.S. operations, aimed at supporting future mobility initiatives. This brings Toyota’s total investments in the U.S. to nearly $60 billion since it began its operations nearly 70 years ago, underscoring the company’s long-term dedication to the American market and its workforce.

Interestingly, Toyota has shown a preference for hybrid and conventional gasoline vehicles over fully electric ones. In a previous statement, Chairman Akio Toyoda indicated that electric vehicles produce the same overall pollution as three hybrids. In a recent interview, Toyoda stressed that while carbon neutrality is a priority for Toyota, hybrid vehicles might be more effective in reducing emissions than full electric vehicles. He pointed out that the company had successfully sold around 27 million hybrids, equating their emissions reduction impact to that of about 9 million EVs. Toyoda argued that, when evaluating lifecycle emissions, EVs could be significantly “dirtier” than gasoline-electric hybrids.

From his standpoint, he noted that one EV’s total pollution may equate to that of three hybrids, especially when accounting for emissions from battery production and energy generation.

This perspective reflects Toyota’s “multipathway” strategy, advocating for various powertrain combinations like hybrids, plug-in hybrids, hydrogen fuel cells, and EVs tailored to specific regional energy needs. Toyoda also warned against the risks of a rapid shift to exclusive EV production, suggesting it could jeopardize jobs, particularly in places like Japan where traditional engine manufacturing remains critical to the auto sector.