Prime Highlights
- Toyota Motor Corp. has started production at its first U.S. battery manufacturing plant in North Carolina, marking a major milestone in its American expansion strategy.
- The automaker plans to invest up to $10 billion more in the United States over the next five years, reinforcing its commitment to domestic production and hybrid vehicle growth.
Key Facts
- The $13.9 billion North Carolina facility is Toyota’s first in-house battery plant outside Japan, aligning with the U.S. government’s push for local EV and hybrid battery production.
- Toyota’s U.S. sales rose 9.9% in the first three quarters of 2025, surpassing 1.3 million vehicles, with hybrids accounting for over 51% market share in the U.S. hybrid segment.
Background
Toyota Motor Corp. announced on Wednesday that it has started production at its new $13.9 billion battery plant in North Carolina, a big step in expanding its U.S. manufacturing. The Japanese automaker also confirmed plans to invest up to $10 billion more than previously planned in the United States over the next five years.
The investment announcement follows former U.S. President Donald Trump’s recent statement that Toyota planned a $10 billion investment in the country. Although Toyota did not reveal the specifics of the additional funding, Tetsuo Ogawa, CEO of Toyota Motor North America, called the move a “pivotal moment” for the company.
The North Carolina facility represents Toyota’s first in-house battery manufacturing plant outside Japan. Initially announced in December 2021, the project aligns with the U.S. government’s drive to boost domestic production of batteries for hybrid and electric vehicles.
Recent market trends have moved in Toyota’s favor, as demand for hybrid vehicles rises while the EV market slows. Toyota leads the U.S. hybrid market, holding over 51% market share through the third quarter, according to Motor Intelligence.
The company is changing its production strategy to meet the changes of the EV regulations and the challenges of tariffs. Toyota’s overall sales in the United States increased by 9.9% till the end of the third quarter of 2025, going over 1.3 million vehicles sold, thus highlighting the company’s continuous growth of the hybrids of its model range.