June 29, 2022

Japanese automaker Toyota’s U.S branch has announced its plans to build a $1.3 billion electric vehicle battery plant in North Carolina’s Greensboro area. The plant is expected to employ around 1,750 people and help meet its growing goals of electric vehicle sales this decade.

According to the company officials and documents, through the establishment of the plant, the state of North Carolina and local governments could provide it well over $430 million in tax breaks, cash incentives, and infrastructure upgrades, only if it meets job creation and investment goals.

The plant is expected to start the production of batteries in 2025.

According to the company, the upcoming plant is part of $3.4 billion that it plans to spend in the U.S. on automotive batteries during the next decade. Nothing has been mentioned how the remaining $2.1 billion would be spent.

The automaker will form a new company with Toyota Tsusho in order to run the upcoming plant. The new company is expected to help the automaker expand its U.S. supply chain, and also increase its knowledge of lithium-ion auto batteries.

Toyota Motor North America CEO, Ted Ogawa commented that new plant location offers the right conditions for the latest investment, such as the high quality education system, infrastructure, access to a diverse and skilled workforce, and a hospitable environment for doing business.

According to economic development officials, the jobs by the company are expected to be created by 2029, and will have average salaries of more than $62,000.

In the company agrees to a second phase of the project it could get hundreds of millions of dollars in additional incentives. In one, it plans to invest around $3 billion and create more than 3,800 jobs in total.

Toyota Motor Corp. by 2030 is aiming to sell around 2 million zero emission hydrogen and battery electric vehicles worldwide per year. While in the U.S. around the same period it plans to sell 1.5 million to 1.8 million vehicles that will be partially electrified.

Lastly, the company mentioned that it would operate at least partially on electricity, which now account for about a quarter of its U.S. sales, and by 2030 it plans for that to raise that to nearly 70%.