Toyota says 70% of its sales volume in U.S. will be EV by 2030
Japan’s leading automaker Toyota Motor Corporation said it will invest approximately USD3.4 billion in automotive batteries in the United States through 2030. Specifically, the investment is for developing and localizing automotive battery production, including those for battery electric vehicles (BEV), and is part of the global total of approximately USD13.5 billion set aside for investment in battery development and production announced last month by Toyota Motor Corporation.
To drive battery production localization, Toyota Motor North America also announced on October 18 that it will establish a new company and build an automotive battery plant together with Toyota Tsusho in the U.S. Aiming to start production in 2025, the project includes an investment of approximately USD1.29 billion until 2031, creating 1,750 jobs.
“Toyota’s commitment to electrification is about achieving long-term sustainability for the environment, American jobs and consumers,” said Ted Ogawa, chief executive officer, Toyota Motor North America. “This investment will help usher in more affordable electrified vehicles for U.S. consumers, significantly reduce carbon emissions, and importantly, create even more American jobs tied to the future of mobility.”
Part of the new company’s activities will include helping Toyota to further develop and expand its local supply chain and production knowledge related to lithium-ion automotive batteries. The venture will first focus on producing batteries for hybrid electric vehicles. Additionally, the move is expected to help further the company’s goals to create a net positive impact on the planet and society, including advancing its efforts towards carbon neutrality in a sustainable and practical way. Further details of the project, including details on the site, production capacity, business structure, etc,will be shared at a future time.
Toyota’s electrification efforts
- Cumulatively, Toyota has sold more than 18.7 million electrified vehicles, including over 4.5 million in the U.S.
- While electrified vehicles already account for nearly 25% of Toyota’s U.S. sales volume, that number is expected to rise to nearly 70% by 2030.
- To meet the growing demand, Toyota continues to steadily expand its lineup of electrified vehicles, including hybrid (HEV), plug-in hybrid (PHEV), fuel cell (FCEV) and battery electric vehicles (BEV), from 55 models today to about 70 models by 2025.
- Of the 70 models, 15 will be BEVs, including seven Toyota bZ (Beyond Zero) models.
- By 2030, Toyota expects to sell two million zero emission vehicles (BEVs and FCEVs) globally, and in the U.S., the company expects to sell between 1.5 million to 1.8 million electrified vehicles, including ZEV models.