A new battery facility in North Carolina has begun production, part of a project valued at about $13.9 billion. Toyota also confirms a U.S.-wide investment of up to $10 billion over the next five years, above previously announced figures.
Officials describe the development as a turning point for the company, emphasising that the North Carolina site marks Toyota’s first fully in‑house battery plant outside Japan. The project was first disclosed in December 2021, aligned with the Biden administration’s efforts to bring battery production for hybrids and electric vehicles onshore.
Since then, the electric-vehicle market has evolved. Demand for hybrid vehicles remains strong, while enthusiasm for pure EVs has cooled in some segments. This shift could benefit Toyota, which continues to lead U.S. hybrid sales, capturing more than half of the market through the third quarter, according to Motor Intelligence data.
Details of the expanded investment have not been fully disclosed, beyond the headline figure cited by executives. The timing coincides with ongoing regulatory and tariff considerations shaping U.S. car manufacturing, in addition to industry adjustments around environmental and energy standards.
Industry analysts note that Toyota’s U.S. operations are navigating a complex policy landscape on emissions and ongoing tariff discussions affecting vehicles and key components. Expanding a domestic manufacturing footprint fits a wider trend among automakers to localise supply chains and bolster domestic EV capacity.
Year-to-date U.S. sales for Toyota rose, with deliveries up 9.9% to just over 1.3 million vehicles in the first three quarters.