Toyota to invest Ksh.377.09 billion in automotive battery production
Toyota announced that it will invest approximately Ksh.377.09 billion (US$.3.4 billion) in automotive batteries in the United States through 2030.
Specifically, the investment is for developing and localising automotive battery production, including those for battery electric vehicles, and is part of the global total of approximately Ksh.1.4 trillion (US$.13.5 billion) set aside for investment in battery development and production announced last month by Toyota Motor Corporation.
To drive battery production localisation, Toyota Motor North America also announced Monday that it will set up 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 Ksh.143 billion (US$.1.29 billion) until 2031, which includes funds that will be used to develop land and build facilities, resulting in the creation of 1,750 new American 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 a site, production capacity and business structure will be announced in the future, says Toyota.
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 percent of Toyota’s U.S. sales volume, that number is expected to rise to nearly 70 percent by 2030.
To meet the growing demand, Toyota is steadily expanding 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.