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Toyota To Invest $2.1 Billion To Build EV And Hybrid Factory In North Carolina

Asia Manufacturing Review Team | Friday, 02 June 2023

 Asia Manufacturing Review Team

Toyota will invest an additional $2.1 billion in an electric and hybrid vehicle battery factory near Greensboro, North Carolina.

The plant will supply batteries to Toyota's massive complex in Georgetown, Kentucky, which will manufacture Toyota's first electric vehicle made in the United States, a new SUV with three rows of seats.

The plans, announced on Wednesday, will not result in immediate job creation at either the Kentucky or North Carolina plants. Toyota Motor Manufacturing Kentucky President Susan Elkington stated that the new vehicle reflects the company's "journey towards an electrified future."

Toyota will target a "growing market segment" with its new three-row SUV, according to Elkington. She declined media questions about the new vehicle's specifics on Wednesday, saying, "I know everybody really wants to know about the vehicle, but today's announcement is really about our manufacturing location."

Toyota intends to hire 2,100 people at the North Carolina battery plant, which will begin production in 2025. The investment will be used to prepare infrastructure for future growth. The total investment in the Randolph County plant now stands at $5.9 billion, with the company aiming to sell 1.8 million electric or hybrid vehicles in the United States by 2030. Toyota broke ground on the plant, which is scheduled to open in 2021.

The Camry sedan, RAV4 Hybrid SUV, several engines, and other components are now manufactured at the 9 million-square-foot Kentucky complex, which employs 9,500 people. When production begins in 2025, the company claims that jobs will be shifted to the new electric vehicle.

Kentucky Gov. Andy Beshear called it a "enormous announcement" that means workers at the automaker's Georgetown complex will have long-term job security.

"All those families can be secure and know that they're going to have the security of those continuing jobs for years and decades to come," the Democratic governor said during his weekly news conference.