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Toyota says it will invest another $2.5 billion in factory in North Carolina


A Toyota dealership in Yokohama, Japan, is pictured February 7, 2021. The company is trying to make headway in the increasingly competitive electric vehicle market.

Toru Hanai | Bloomberg | beautiful pictures

Giant car Toyota said on Wednesday that it would invest an additional $2.5 billion in a U.S. facility that makes batteries for both hybrid and battery-powered electric vehicles.

Toyota Battery Manufacturing North Carolina is scheduled to begin operations in 2025, with the company saying total investment in the plant will now amount to $3.8 billion.

Norm Bafunno, senior vice president, manufacturing and engineering at Toyota Motor North America, said the announcement marks “another significant milestone” for the business.

The additional investment in the US is part of a broader $5.6 billion investment in battery production, with Toyota noting that demand for battery-powered electric vehicles is growing.

To this end, the company said it will aim to increase “combined battery production capacity” in the US and Japan by up to 40 gigawatt-hours.

Read more about electric vehicles from CNBC Pro

As well as diesel and gasoline powered vehicles, Toyota is known for its hybrid and hydrogen fuel cell offerings. It is also trying to make headway in the increasingly competitive battery-electricity market, where companies prefer Tesla and Volkswagen jostling for positions.

This is not without its challenges. In June 2022, Toyota issued a safety recall for its more than 2,000 all-electric SUVs, the bZ4X.

Toyota may be looking to invest billions of dollars in EV battery production, but on Wednesday the business stressed it would also “continue to work hard to flexibly meet the needs” of customers “at all levels.” countries and regions by offering as many powertrains and offering as many options as possible.”

Indeed, Toyota Europe’s website states that “the internal combustion engine continues to be the most common vehicle powering vehicle and it will continue to play a role for the next 20 to 30 years.”

All of the above comes at a time when major economies are laying out plans to reduce the environmental impact of road traffic.

Just this month, the California Air Resources Board passed a rule requiring all new auto sales in the state to zero emissions by 2035.

Elsewhere, the UK wants to stop selling new diesel and petrol cars and trucks by 2030. From 2035, all new cars and trucks must be free of exhaust emissions. . European Union – which the UK leaves on January 31, 2020 – are pursuing similar goals.

According to the International Energy Agency, electric vehicle sales reach 6.6 million by 2021. In the first quarter of 2022, EV sales reached 2 million units, up 75% from the first three months of 2021.



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