Announcement of Fresh Electric Vehicle and Battery Strategies for America and China
Toyota is set to ramp up its Battery Electric Vehicle (BEV) production, with significant milestones in both the United States and China. The company's American battery manufacturing company, Toyota Battery Manufacturing, North Carolina (TBMNC), is poised to begin production in April, marking a significant step forward in Toyota's electrification push in the U.S.
The TBMNC, which will produce batteries for Toyota's hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), and BEVs, has received an investment of approximately $14 billion from Toyota, with plans to create around 5,000 new jobs. The new plant, scheduled to open late in 2025, aims for an annual production capacity of 300,000 EV battery units.
In the U.S., Toyota will introduce its first BEV, the Toyota bZ4X, in 2025. The model, branded as Toyota bZ in North America from 2025, has undergone a mid-cycle refresh, improving charging capabilities and adopting the North American Charging Standard in the U.S.
Meanwhile, in China, Toyota has announced the establishment of a new company dedicated to the development and local production of Lexus BEVs and automotive batteries. The new company, while specific production timelines were not detailed, indicates Toyota's commitment to ramped development of BEVs in the late 2020s.
Despite a third-quarter decline in income due to certification issues, one-time expenses, and additional investments, Toyota managed to maintain a high level of income due to steady improvement efforts in the genba. Executive Vice President Yoichi Miyazaki attributed this earning power to production levels recovering and stabilizing, the ability to deliver attractive products, and the continued learning and engagement among different countries and regions.
Vice President Miyazaki reiterated Toyota's commitment to making the automotive sector more attractive and boosting the industry's competitiveness. Toyota aims to team up with various partners in the auto industry and beyond to create new value, products, and services, contributing to happiness for all.
Toyota's strategic pivot to full-electric vehicles, after decades of hybrid experience, is reflected in its plan to introduce 30 electrified models by 2030, including 15 fully electric vehicles. Key products for the U.S. market include the bZ5X, a three-row EV SUV, and an upcoming electric Tacoma pickup truck, alongside electrified variants of existing SUVs like the RAV4 and Highlander.
In summary, Toyota's BEV production in the U.S. is gearing up in the latter half of 2025 with battery plant openings and refreshed models, while full SUV BEV production in Kentucky is planned for 2028. Toyota's cautious transition strategy reflects a balance between BEV production and ongoing hybrid and gas SUV production.
The TBMNC, with a planned annual production capacity of 300,000 electric-vehicle battery units, not only supports Toyota's hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), and BEVs production but also signifies Toyota's growing interest in technology, particularly in electric-vehicles, as part of their lifestyle transformation. In line with this, Toyota is set to introduce its first BEV, the Toyota bZ4X, in 2025, demonstrating Toyota's commitment to enhancing the automotive sector and promoting a more competitive and attractive electric-vehicle lifestyle.
