Toyota to expand EV battery production in U.S. and Japan factories

Toyota could expand electric vehicle (EV) battery production in factories in the U.S. and Japan. With this decision, the automaker may reduce some costs around the transportation of finished heavy battery products.

NikkeiAsia reports that the assembly will begin at the Toyota Takaoka plant near Nagoya between the spring and fall of 2025.

The Miyata plant in western Japan will begin production in the winter next year.  On the other hand, the Kentucky factory will kick off battery assembly operations as early as spring 2026.

For now, Toyota only produces its battery packs in the Motomachi plant in Japan.

Last year, the carmaker announced that it would invest $2.1 billion in an electric hybrid vehicle battery plant near Greensboro, North Carolina. It plans to hire 2,100 workers at the factory, which will start production in 2025.

This new plant will supply batteries to Toyota’s plant in Kentucky for U.S.-made EVs. The plant in Kentucky expands to 9 million square feet and has 9,500 employees.

Earlier this month, Toyota Motor North America (TMNA) reported year-end 2023 U.S. sales of 2,248,477 vehicles. It was an increase of 6.6 percent in sales. The Fourth Quarter accounted for 619,661 vehicles with a 15.4 increase in the country compared to the same quarter in 2022.

Toyota’s total electric vehicle sales are 657,327 about 30% of the overall vehicle sold in the U.S.