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Toyota Pledges $3.4 Billion for U.S. Operations, to Build New Battery Factory Here

The remainder of the current decade will either make or break the automotive industry. These are the years when an incredible shift to a more sustainable future is supposed to happen, and everybody seems to be on board with the task. Including giant Toyota, which this week once again stated its goal of becoming one of the driving forces behind these changes.
Toyota bZ4X Concept 15 photos
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As recent events have shown, electrified vehicles have no way to succeed if carmakers keep sourcing some of the key components elsewhere. Batteries are such key components, and everyone seems to have understood early on it is better to have the manufacturing process in-house.

Somewhat late to the party, Toyota said this Monday it will erect a new production facility in the U.S., ready to spit out batteries in 2025. The plant will be established under a new entity, will be built in a yet undisclosed location, and will need to employ some 1,750 people once up and running.

The facility will cost the carmaker $1.29 billion, about half of the total $3.4 billion it plans on pumping into the U.S. economy by the end of the decade to support development and production of automotive batteries.

"Toyota's commitment to electrification is about achieving long-term sustainability for the environment, American jobs and consumers," said in a statement Ted Ogawa, Chief Executive Officer, 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."

The Japanese are making these huge steps based on hard numbers. Electrified vehicles already account for 25 percent of their American sales, and that is expected to grow to 70 percent by 2030 – between 1.5 and 1.8 million cars. Of the 70 Toyota models that will be on the market by the middle of the decade, 15 will be battery-electric ones.

Editor's note: Gallery shows the Toyota bZ4X Concept.

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