Toyota is working hard to give the people what they want and what they want is electric vehicles.
Key details
As the shift toward electric increases, Toyota Motor has primarily been focusing on its hybrid model cars, but now it is shifting its energy to all electric vehicles (EVs).
The automaker recently announced it will be investing $5.3 billion in battery production in the U.S. and Japan, with $1.3 billion of it being sent to the U.S.
Now, due to the demand of EVs skyrocketing Toyota announced a $3.8 billion investment in the U.S.
Why it’s news
Toyota is planning to use the billions to build an EV battery plant near Greensboro, North Carolina. This funding brings Toyota’s global investment to $5.6 billion as it aims to go carbon-neutral by 2035.
The plant is expected to begin battery production for both hybrid and all electric Toyota cars in 2025.
“This investment is aimed at enabling Toyota to flexibly meet the needs of its various customers in all countries and regions by offering multiple powertrains and providing as many options as possible,” the Toyota news release says.
Backing up a bit
More than half of car buyers worldwide want an EV. The number of people wanting electric vehicles (EV) has hit a worldwide tipping point, so Toyota marketing to all types could be beneficial.
The latest EY Mobility Consumer Index shows that 52% of people looking to buy a car want to buy an EV. This is the first time the number has exceeded 50%, representing a rise of 11 percentage points since last year.
Recently, President Joe Biden signed a climate and healthcare law called the Inflation Reduction Act. The new bill includes a $369-billion investment in climate and energy policies.
The billions in climate and energy investment will boost renewable energy infrastructure in manufacturing, like solar panels and wind turbines, and include tax credits for electric vehicles and measures to make homes more energy efficient.
This new law only pertains to EVs made in the U.S., so with Toyota investing billions into its American battery operations some vehicles could be eligible for the tax credit.
