Toyota Motor Corporation has officially started production at its $13.9 billion battery plant in North Carolina, marking a major milestone in the company’s expansion of hybrid and electric vehicle (EV) production in the United States. Alongside the plant opening, Toyota confirmed plans to invest an additional $10 billion over five years to further strengthen its U.S. manufacturing footprint.

The announcement underscores Toyota’s commitment to domestic production of hybrid and electric vehicles, a strategic move as global automakers increasingly focus on sustainable and electrified mobility.

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North Carolina Battery Plant Details

The new facility, Toyota’s 11th U.S. factory, spans 1,850 acres (749 hectares) and features 14 battery production lines for plug-in hybrids and full EVs. Once fully operational, the plant will have an annual production capacity of 30 gigawatt-hours and will employ approximately 5,000 workers.

The batteries produced will power hybrid versions of Toyota’s Camry, Corolla Cross, RAV4, and a yet-to-be-announced all-electric, three-row vehicle. The plant will also supply batteries to factories in Kentucky and the Mazda-Toyota joint venture in Alabama.

Ted Ogawa, President of Toyota Motor North America, said:

“Over the next five years, we are planning an additional investment of $10 billion in the U.S. to further grow our manufacturing capabilities, bringing our total investment in this country to over $60 billion.”

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Multi-Pathway Approach to Electrification

Toyota has been relatively slow to transition fully to EVs but has accelerated hybrid production for its most popular vehicles. Ogawa emphasized the company’s multi-pathway strategy:

“We know there is no single path to progress. That’s why we remain committed to offering fuel-efficient gas engines, hybrids, plug-in hybrids, battery electronics, and fuel cell electronics.”

The strategy reflects Toyota’s intent to balance environmental sustainability with consumer choice, particularly in light of changing U.S. federal incentives and regulations.

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Government Support and Policy Context

Last month, during a visit to Japan, U.S. President Donald Trump highlighted Toyota’s $10 billion investment plan and encouraged Americans to buy Toyota vehicles, signaling continued political support for domestic manufacturing.

The Trump administration has also rescinded certain EV tax credits and eased fuel economy standards, impacting automakers’ strategies for hybrids and electric vehicles. U.S. Transportation Secretary Sean Duffy indicated that upcoming proposals will further adjust fuel economy rules to better align with current industry practices.

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Market Reaction

Toyota’s stock responded positively to the news, rising approximately 0.4 percent in midday trading in New York. Investors welcomed the company’s commitment to U.S. production and battery technology, signaling confidence in Toyota’s long-term electrification strategy.

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Conclusion

The launch of Toyota’s North Carolina battery plant and the confirmation of a $10 billion U.S. investment mark a significant step in the company’s hybrid and EV production expansion. The plant will not only create thousands of jobs but also strengthen Toyota’s position in the competitive U.S. auto market, as domestic manufacturing and battery technology become central to the future of mobility.