Toyota Motor said on Wednesday that it will invest $5.6 billion in the development of electric car batteries in Japan and the United States.
The Japanese corporation stated that manufacturing will commence between 2024 and 2026 and enhance production capacity in both nations by 40 gigawatt hours, without elaborating on present production.
Toyota factories in Japan and the firm it co-founded with Panasonic Holdings, Prime Planet Energy & Solutions, will get $3.1 billion, while Toyota Battery Manufacturing in the United States would receive around $2.7 billion.
The purpose of the investment is to allow Toyota to satisfy the demands of consumers in all nations and areas by providing a variety of drive systems and as many alternatives as possible, according to the press statement.
Due to tougher environmental laws, automakers invest billions of dollars to increase manufacturing of batteries and electric cars.
Last year, Toyota declared that by 2030, it will invest around $58 billion on the electrification of its models, with plans to allocate half of that sum to the manufacturing of electric vehicles. Despite this, they predict that electric vehicles would only account for one-third of sales by 2030.
Toyota believes that many routes to carbon neutrality exist. It also believes that the solutions for reducing CO2 emissions as much and as quickly as possible while preserving the quality of life for its clients vary significantly by country and region. Toyota will continue to provide a range of powertrains and as many options as possible in order to meet the different needs of its customers in all countries and regions, according to the company’s statement.
