On Tuesday, Toyota confirmed it's investing an additional $8 billion in its initial electric vehicle (EV) battery plant in North America, a move seen as bolstering its electric vehicle division.
By the close of the decade, the Japanese car maker aims to roll out 30 battery-powered cars worldwide and is on a sprint to expedite its EV game. Situated in North Carolina, the facility now boasts a value of a mind-boggling $13.9 billion, showing a considerable leap from Toyota's first investment blueprint of $1.29 billion, per TechCrunch.
The original scheme for this North Carolina plant was crafting batteries for both battery-operated vehicles (BEVs) and hybrid electric cars. This facility occupies 1,825 acres in Liberty, North Carolina, to this fresh infusion of funds will feature eight lines dedicated to manufacturing plug-in hybrid and fully electric vehicle batteries.
Toyota's Electrification Efforts
Once finished, the Toyota EV battery plant will possess 10 production lines and is scheduled to churn out 30 GWh annually by the year 2030. The scale can be understood by considering that Tesla's famed "gigafactory," established in partnership with Panasonic can generate 35 GWh worth of cells per annum.
Toyota's solid commitment towards shifting into electrification marks a meaningful shift as it had earned a reputation for lagging in transforming its exhaustive lineup of automobiles into BEVs.
Despite ramping up its ventures into EVs significantly, Toyota still manufactures and retails a broad array of car models like hybrids, and plug-in hybrids alongside battery-operated ones. Scheduled to commence operations in 2025, the North Carolinian facility represents Toyota's maiden undertaking at a significant level into automobile battery manufacture globally.
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It is expected that six production lines will be part of the factory; four lines are planned to aid hybrid vehicle production which includes famous models akin to Prius, while two additional lines are designed to enhance battery-operated vehicles' production.
The 1.90% increase in Toyota Motor shares during Monday's midday trade demonstrates how well the market responded to the announcement of Toyota's growth, per Investing.com.
Toyota has great plans for electric cars as other automakers rethink their tactics. Due to market shifts for high-end electric automobiles, Ford and General Motors have adjusted their ambitious plans to convert their vehicle portfolios to electric vehicles.
These firms have either delayed the launch of new EV models or put off plans to build battery factories even while they continue to research next-generation EVs. Ford just revealed that it would be delaying expenditures linked to electric vehicles by around $12 billion.
North Carolina Emerging as EV Hub
North Carolina is becoming a well-known center for the production of batteries and electric vehicles. Numerous noteworthy investments are now in progress, including those by organizations such as Vinfast of Vietnam and Redwood Materials.
Governor Roy Cooper of North Carolina praised the state's transition to a clean energy economy for creating higher-paying jobs that will benefit communities and families for years, as per a Reuters report.
Additionally, India's Epsilon Advanced Materials (EAM) aims to develop a $650 million battery factory in the state by 2026.
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