Toyota invests billions in batteries for electric cars

Toyota will invest billions in the production of electric car batteries in Japan and the United States. With the sale of batteries, the world’s largest automaker wants to respond to the growing demand for cleaner transportation around the world.

Toyota is allocating up to 730 billion yen, about 5.3 billion euros, for battery production that the company expects to start between 2024 and 2026. The company said: “This investment aims to enable Toyota to meet the different needs of its customers in all countries and regions by offering multiple variants. of batteries.

While Toyota sees hybrids as well as hydrogen-powered cars as part of a green future, the company has accelerated its drive to electrify more of its models in recent months. In December, the company pledged to be ready to sell only zero-emissions cars in Europe by 2035, in line with an EU target.

Through the investment, Toyota aims to increase its battery production capacity in Japan and the United States by up to 40 gigawatt-hours per hour. In Japan, nearly 400 billion yen (2.9 billion euros) will be invested in Prime Planet Energy & Solutions’ Himeji city plant and Toyota’s own plants. In the US, the company is investing 325 billion yen (2.3 billion euros) in a plant in North Carolina.

Automakers and battery manufacturers around the world are rushing to ramp up battery production to meet strong demand. Japan’s Panasonic Corporation, which supplies batteries to US electric car maker Tesla, is in talks to build another US factory worth about $4 billion. South Korean battery makers also have a series of plans for new plants in the United States, including four for General Motors, two for Stellants and three for Ford.