NAGOYA, Japan—Toyota Motor Corp. plans to invest $3.4 billion in the United States over the next decade to support its electric vehicle production efforts. The initiative includes construction of a new battery factory that will start production in 2025.

“[Our] commitment to electrification is about achieving long-term sustainability for the environment, American jobs and consumers," says Ted Ogawa, CEO of 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 activities will include [further expanding our] local supply chain and production knowledge related to lithium-ion automotive batteries,” explains Ogawa. “The venture will first focus on producing batteries for hybrid electric vehicles.”

While EVs already account for nearly 25 percent of Toyota’s U.S. sales volume, Ogawa predicts that number will rise to nearly 70 percent by the end of this decade. Toyota plans to sell more than 1.5 million EVs in the U.S. by 2030.