Toyota will build a US battery plant as part of a $3.4 billion investment

Toyota plans to spend around $ 3.4 billion to improve battery production capabilities in the US, car makers announced on Monday. As part of investment, Toyota said it would establish a new company that would, with the help of Toyota Tsusho subsidiary, building a battery manufacturing factory somewhere in the US. The company expects to invest $ 1.29 billion to the facility at the end of 2031.

Toyota said it would share detail about the project, including where he planned to build a factory, in the future. However, this facility will initially focus on making batteries for hybrid electric vehicles, with production it is expected to begin around 2025. Toyota hopes to create around 1,750 jobs through the project.

If nothing else, investment is a recognition by Toyota which needs to diversify the electrification strategy. More than almost all other car makers, he has invested significantly into fuel cell technology, with not much showing its efforts, at least not in the US. Outside of California, you cannot buy the Mirai fuel cell sedan. But as part of Beyond Zero Push, Toyota hopes to change it, at this time planning to offer 70 different electric models, including 15 battery electric vehicles, in 2025.