Everybody accepts that the future of transport will be electric. Automakers around the world are investing billions of dollars to ramp up battery and electric vehicle production. Toyota, the world’s largest automaker by volume, plans to build a new $1.29 billion factory in the U.S. to manufacture batteries for gas-electric hybrid and fully electric vehicles. The company said it eventually will employ 1,750 people and start making batteries in 2025. Toyota will form a new company to run its new U.S. battery plant with Toyota Tsusho, a subsidiary that now makes an array of parts for the automaker. “Today’s commitment to electrification is about achieving long-term sustainability for the environment, American jobs and consumers,” Ted Ogawa, Toyota’s North American CEO, said in a statement. Toyota plans to sell 2 million zero emission hydrogen and battery electric vehicles worldwide per year by 2030. It will have 15 battery electric vehicles for sale globally by 2025.
Toyota Motor’s North American unit said Monday it will invest a total about $3.4 billion (380 billion yen) on U.S. automotive battery development and production in the United States through 2030. It also said in September it aimed to slash costs of its batteries by 30% or more by working on materials used and the way the cells are structured. A few months ago, U.S. President Joe Biden signed an executive order setting a target to make half of all new vehicles sold in 2030 zero-emissions vehicles. The battery is what makes electric vehicles sustainable. Research is required for development of more durable, efficient electric batteries.