Toyota Motor said it would spend US$1.29bn to build an electric vehicle (EV) battery manufacturing plant in North Carolina.
The factory would be built on the Greensboro-Randolph Megasite park near Greensboro and be managed by the recently incorporated Toyota Battery Manufacturing North Carolina (TBMNC), which is 90% owned by Toyota Motor Corporation and 10% by Toyota Tsusho.
The plant is scheduled to become operational in 2025 with four production lines each capable of delivering lithium ion batteries for 200,000 vehicles, employing 1,750 people.
A further two production lines would be added later, giving the plant capacity to produce batteries for up to 1.2m EVs per year.
The US$1.29bn spend included funds to develop land and build infrastructure and facilities around the plant. Toyota could receive over US$430m in cash incentives, tax breaks and infrastructure upgrades from North Carolina and local governments if it meets pre-agreed job creation and investment targets, according to reports citing local officials and government documents.
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Ted Ogawa, CEO of Toyota Motor North America, said in a statement: “The future of mobility is electrification and the Greensboro-Randolph Megasite is the ideal location to make that future a reality.
“North Carolina offers the right conditions for this investment, including the infrastructure, high-quality education system, access to a diverse and skilled workforce and a welcoming environment for doing business.”
Toyota said it has set a target to achieve carbon neutrality for its vehicles and operations by 2050 and is committed to using 100% renewable energy at the new Greensboro-Randolph facility to produce the batteries.