PLANO, TX—Toyota plans to build a new billion-dollar battery manufacturing plant in the U.S. as the Japanese automaker ramps up development and production of the key components needed for hybrid and electric vehicles.
The move is the latest in a series of similar announcements by rival automakers that also plan to build battery factories or electric vehicle assembly plants in the U.S., including General Motors and Ford.Faced with supply constraints for batteries, automakers are increasingly looking to build parts themselves, following a path laid out by Tesla, which builds its own batteries at a plant in Nevada.
Toyota said it would spend $3.4 billion on battery investments in the U.S. through 2030, including a new $1.3 billion plant employing 1,750 workers. It did not provide additional details of how it would invest the funds, except that it would begin with batteries for hybrids.
Toyota spokesman Scott Vazin declined to name the location of the new plant but said the company would likely reveal it by the end of 2021.
The automaker’s current U.S. manufacturing facilities are located in Texas, West Virginia, Missouri, Tennessee, Alabama, Kentucky, Mississippi and Indiana.