Toyota (TM) has just told investors that it plans to invest roughly $3.4 billion in the U.S. related to the development and local production of automotive batteries. TM stock was up 0.98% pre-market today.
Standard and Electric Car Batteries Made in the USA
Toyota’s $3.4 billion (380 billion yen) investment is slated through 2030. Developing and localizing automotive battery production, according to a Toyota news release, “is part of the global total of approx. $13.5 billion (1.5 trillion yen) set aside for investment in battery development and production” that the company announced in Sept. 2021. Batteries for electric vehicles are also a part of this investment.
Toyota Motor North America’s New “Battery” Company
Toyota Motor North America will establish a new American-based company to drive battery production localization. And with Toyota Tsusho, Toyota Motor North America plans to build a new automotive battery plant, with a production start date goal of 2025 — hopefully creating 1,750 new American jobs. “Toyota's commitment to electrification is about achieving long-term sustainability for the environment, American jobs and consumers,” Toyota Motor North America CEO Ted Ogawa commented.
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Founded in 1937, Toyota is one of the world's largest automakers with 9.92 million units sold at retail in fiscal 2021 across its light vehicle brands. Brands include Toyota, Lexus, Daihatsu, and truck maker Hino; market share in Japan is about 52%, while U.S. share is over 15%. The firm also owns large stake in Denso, a parts supplier, at least 16% of Subaru (with a deal to raise that to 20%), and holds investments in many other firms, including shares of Uber Technologies and about 5% in each of Mazda and Suzuki. Fiscal 2021 sales excluding financial services were JPY 25.1 trillion. Toyota also has a financing arm and manufactures homes and boats.
