Toyota opens a battery factory in the United States, confirms new investments worth $10 billion

toyota motor It said on Wednesday it had begun production at a new $13.9 billion battery plant in North Carolina and confirmed plans to invest up to $10 billion more than previously expected over the next five years in the United States.

The Japanese automaker did not reveal details about the investment increase other than Toyota Motor North America CEO Tetsu Ogawa, who called it a “pivotal moment” in the company’s history along with the new battery plant, according to a statement.

This facility is Toyota’s first in-house battery factory outside Japan. It was first announced in December 2021 amid the Biden administration’s push to produce hybrid and all-electric vehicle batteries off the ground.

Since then, electric vehicle market conditions have deteriorated, while demand for hybrid vehicles has continued to grow significantly. These changes are positive for Toyota, the U.S. leader in hybrid vehicle sales with a market share of more than 51% during the third quarter of this year, according to Motor Intelligence data.

It’s unclear how much of the investment is already planned but not previously announced, but the announcement comes on the heels of President Donald Trump’s statement last month that Toyota would invest $10 billion in the United States.

Toyota and the entire auto industry are trying to navigate production plans amid regulatory changes affecting electric vehicles and Trump’s set of tariffs on new vehicles and parts.

Toyota sales in the United States increased by 9.9% during the third quarter of this year, reaching more than 1.3 million vehicles sold.