Toyota to build electric car battery plant for Lexus production

Toyota Motor Corp., the world’s best-selling automaker, plans to build an electric vehicle battery plant in Fukuoka, southwestern Japan. according to Business magazine Nikkei will supply batteries to a factory that produces luxury Lexus cars.

The move represents an expansion of Toyota’s efforts to boost its capacity to manufacture electric vehicle batteries and expand its presence in the global market. The company wants to make Kyushu, where Fukuoka is based, a key part of the battery-powered vehicle supply chain and an export base for Asia.

Toyota’s EV Strategy

Toyota has taken several initiatives to boost its EV battery production capacity, including the global rollout of next-generation batteries starting in 2026. The company plans to introduce EVs worldwide using these new batteries, produced by its EV-oriented BEV Factory unit.

The automaker is targeting sales of 3.5 million electric vehicles annually by 2030, with just under half of those to be built by the BEV Factory unit. In 2023, Toyota sold 104,000 electric vehicles. The new battery factory is expected to play a crucial role in achieving those goals.

Primearth EV Energy operates new factory

The new battery plant will be operated by Primearth EV Energy, another Toyota subsidiary that specializes in making batteries for hybrids, plug-in hybrids and battery-only vehicles. How much Toyota will spend on the battery plant and when construction will begin have yet to be finalized.

Nikkei did not specify where it got the information about the new plant. However, the report suggests that Toyota is seriously planning to expand its presence in the global electric vehicle market.

Main Takeaways

Toyota to build electric vehicle battery plant in Fukuoka, Japan
– The factory will supply batteries to a factory that produces Lexus cars.
– This move represents an expansion of Toyota’s efforts to boost its capacity to produce electric vehicle batteries.