# Toyota Motor to invest $5.3 billion in Japan, U.S. for EV battery supply Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-08-31 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Toyota to Invest £5.27bn in Battery Production for Electric Meta Description: Toyota announces a massive investment of 730 billion yen in Japan and the United States to bolster their battery production for electric vehicles, aiming to URL: https://financedigest.com/toyota-motor-to-invest-5-3-billion-in-japan-u-s-for-ev-battery-supplyhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-08-31t061901z1lynxmpei7u06mrtroptp4toyota-emissions-usa-1736815330522-compressed.jpg) (Reuters) -Toyota Motor Corp said on Wednesday it would invest up to 730 billion yen ($5.27 billion) in Japan and the United States to make batteries for fully electric vehicles, a category of automobile that critics say it has been slow to embrace. When the additional facilities come on line between 2024 and 2026, Toyota’s battery production capacity in the two countries will have increased by 40 gigawatt-hours, the company said, giving no current figure for comparison. “This investment is aimed at enabling Toyota to flexibly meet the needs of its various customers in all countries and regions by offering multiple powertrains and providing as many options as possible,” it said in a statement. Some green investors and environmental groups have said the [company should move](https://www.financedigest.com/exxon-sues-eu-in-move-to-block-new-windfall-tax-on-oil-companies.html "Exxon sues EU in move to block new windfall tax on oil companies") faster to introduce fully electric (or “battery electric”) vehicles, rather than clinging to the internal combustion engine in such powertrain configurations as the hybrid. Toyota is the latest in string of companies announcing big [battery investment](https://www.financedigest.com/volkswagen-to-invest-in-mines-in-bid-to-become-global-battery-supplier.html "Volkswagen to invest in mines in bid to become global battery supplier") in the United States, where a shift towards fully electric automobiles could accelerate as the country discourages use of gasoline and diesel vehicles and tightens eligibility for tax credits. Major rival Honda Motor Co said on Monday it and Korean battery supplier LG [Energy Solution Ltd would build a $4.4 billion](https://www.financedigest.com/petrofac-hitachi-energy-receive-14-billion-agreement-from-tennet.html "Petrofac, Hitachi Energy receive billion agreement from TenneT") lithium-ion battery plant for electric vehicles in the United States. In its Wednesday statement, Toyota said it would [invest about 400 billion](https://www.financedigest.com/shell-to-evaluate-25-billion-pound-british-investments-after-windfall-tax.html "Shell to ‘evaluate’ 25 billion pound British investments after windfall tax") yen in Japan. That money would go into two of its own plants, one owned by its joint venture with Panasonic Holdings Corp – Prime Planet [Energy & Solutions](https://www.financedigest.com/ges-investors-seek-solutions-to-renewable-energy-supply-chain-challenges.html "GE’s investors seek solutions to renewable energy, supply chain challenges") Co – and a third that is being built for another joint company with Panasonic. In addition, about 325 billion yen would be [invested in Toyota Battery Manufacturing](https://www.financedigest.com/uk-becoming-less-attractive-for-investment-manufacturers-warn-2.html "UK becoming less attractive for investment, manufacturers warn") in North Carolina. Automakers worldwide are spending [billions of dollars to ramp](https://www.financedigest.com/delivery-hero-ramps-up-interest-payments-to-raise-1-billion-euro-convertible-bond.html "Delivery Hero ramps up interest payments to raise 1 billion euro convertible bond") up battery and electric vehicle production in the face of tougher environmental regulations. President Joe Biden signed a $430 billion climate, health care and [tax bill this month that would render electric vehicles assembled outside North America ineligible for tax credits](https://www.financedigest.com/eu-us-working-on-deal-to-make-ev-minerals-eligible-for-tax-credits-eu-official.html "EU, US working on deal to make EV minerals eligible for tax credits -EU official"). California announced a plan last week to ban [sales of new cars](https://www.financedigest.com/mercedes-posts-rise-in-q1-sales-boosted-by-evs-premium-cars.html "Mercedes posts rise in Q1 sales boosted by EVs, premium cars") powered only by internal combustion engines by 2035. Toyota last year committed 8 trillion yen to electrify its car model range by 2030, with half of that slated to develop fully [electric vehicles](https://www.financedigest.com/tax-credits-for-eu-electric-vehicles-to-dominate-mondays-trade-talks-with-u-s.html "Tax credits for EU electric vehicles to dominate Monday’s trade talks with U.S"). Still, it expects annual [sales of such cars](https://www.financedigest.com/uk-new-car-sales-rise-17-in-march-best-ever-month-for-evs.html "UK new car sales rise 17% in March; best ever month for EVs") to reach only 3.5 million units by the end of the decade, around a third of its current total volume. In June, Toyota said it had recalled more than 2,000 of its first mass-produced electric vehicle, the bZ4X SUV, less than two months after unveiling the model, because of a [risk the wheel could come](https://www.financedigest.com/analysis-watch-out-risk-assets-the-rout-in-bonds-is-coming-your-way.html "Analysis-Watch out risk assets, the rout in bonds is coming your way") loose. ($1=138.43 yen) (Reporting by Satoshi Sugiyama in Tokyo and Baranjot Kaur in Bengaluru; Editing by Subhranshu Sahu and Rashmi Aich) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---