Toyota Battery Plant Opens in North Carolina, Creates 5,100 U.S. Jobs

Toyota Battery Plant Opens in North Carolina, Turbocharging U.S. Manufacturing

Toyota’s Toyota battery plant in Liberty, North Carolina, has officially begun production, marking a significant milestone in the automaker’s U.S. localization strategy. This nearly $14 billion facility is Toyota’s first and only battery plant outside of Japan and its eleventh manufacturing plant in the United States.

The new Toyota battery plant is set to create 5,100 new jobs in the state. This commitment is backed by an additional $10 billion investment over the next five years to strengthen U.S. operations, bringing Toyota’s total investment in the country to nearly $60 billion.

“Today’s launch of Toyota’s first U.S. battery plant and additional U.S. investment… marks a pivotal moment in our company’s history,” said Ted Ogawa, president and CEO of Toyota Motor North America (TMNA). “Toyota is a pioneer in electrified vehicles, and the company’s significant manufacturing investment… further solidifies our commitment.”

Powering the Next Generation of Hybrids and EVs

Spanning over 1,850 acres, the new mega-facility will serve as Toyota’s primary hub for developing and producing lithium-ion batteries. The plant will eventually house 14 battery production lines to support Toyota’s extensive portfolio of electrified vehicles, including:

• Hybrid Electric Vehicles (HEVs): Such as the Prius, Camry, and RAV4.
• Plug-in Hybrid Electric Vehicles (PHEVs): Like the Prius and RAV4 Plug-in Hybrids.
• Battery Electric Vehicles (BEVs): Including the bZ4x.

Batteries from this Toyota battery plant are already being shipped to Toyota Kentucky for the assembly of the Camry and RAV4, and to the Mazda Toyota Manufacturing plant in Alabama for the Corolla Cross.

Furthermore, Toyota confirmed that the batteries for a “yet-to-be-announced all-electric 3-row BEV” will also be produced at the North Carolina site.

A “Multi-Pathway” Bet on Hybrids

This massive investment underscores Toyota’s “multi-pathway powertrain strategy,” which emphasizes a diverse range of electrified options rather than focusing solely on pure BEVs. Hybrids and plug-in hybrids have been a significant driver of Toyota’s sales, with “electrified” vehicles accounting for 44.9% of total sales in North America.

This strategy reflects Chairman Akio Toyoda’s belief that BEVs will not be the only solution, predicting they will ultimately cap at a 30% market share, with hybrids, FCEVs, and even hydrogen engines making up the rest.

An internal document previously explained Toyota’s resource-efficiency concept, dubbed the “1:6:90 rule.” It argues that the raw materials for one 300-mile-range BEV battery could instead produce six plug-in hybrid batteries or 90 hybrid-electric batteries. By this logic, the 90 hybrids would achieve a 37-times-greater carbon reduction over their lifetimes than the single BEV.

With this new Toyota battery plant now operational, the company is solidifying its ability to produce its fast-selling hybrid models domestically and control its battery supply chain for years to come.

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