Toyota Motor Corp., recognized as the world’s largest automaker by annual vehicle sales volume, has unveiled plans to invest up to $10 billion in its United States operations over the next five years. This significant commitment targets the expansion of battery production for a range of electrified vehicles, including hybrids, plug-in hybrids, and fully electric models. By doing so, Toyota aims to elevate its total U.S. investments to approximately $60 billion, a figure that reflects nearly seven decades of building a robust manufacturing footprint in the country since its first American assembly plant opened in 1957.
This strategy not only addresses the rising demand for sustainable transportation but also reinforces Toyota’s position as a leader in vehicle electrification, drawing on its extensive experience with over 25 million hybrid vehicles sold globally to date. The investment aligns with broader industry shifts toward reducing carbon emissions and meeting stricter environmental regulations, while ensuring a reliable domestic supply chain for critical components like lithium-ion batteries.
Groundbreaking Opening of North Carolina Battery Plant
In a landmark event, Toyota has officially opened its first dedicated battery manufacturing facility outside of Japan, located in Liberty, North Carolina. Named Toyota Battery Manufacturing North Carolina (TBMNC), this state-of-the-art plant spans 7 million square feet across a sprawling 1,850-acre site, making it one of the largest industrial developments in the state’s history. Construction began with a groundbreaking ceremony in 2021, and production ramped up progressively, with initial battery shipments starting in June 2025 to support nearby assembly plants.
The facility’s design incorporates advanced automation for battery cell assembly, module integration, and quality testing, ensuring high efficiency and safety standards. At full capacity, TBMNC will feature 14 production lines: four dedicated to hybrid electric vehicle (HEV) batteries, and ten supporting both battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), with an annual output exceeding 30 gigawatt-hours (GWh) of battery capacity. This production scale could power batteries for up to 800,000 vehicles per year initially, scaling further through 2030 to meet growing market needs. The plant’s batteries will supply key models such as the hybrid Camry, Corolla Cross, RAV4, and upcoming all-electric three-row SUVs assembled at Toyota’s Indiana and Kentucky facilities, starting in 2026.
To promote sustainability, the entire operation will run on 100% renewable energy sourced from Duke Energy, minimizing environmental impact and aligning with Toyota’s global carbon neutrality goals by 2050. This eleventh U.S. manufacturing site builds on Toyota’s legacy here, where the company has produced more than 35 million vehicles and now supports over 50,000 direct jobs nationwide.
Investment Details and Economic Impact
The North Carolina plant alone accounts for a substantial portion of Toyota’s recent U.S. commitments, with a direct investment of nearly $14 billion, up from an initial $13.9 billion announced in 2023. This funding covers everything from land acquisition and building construction to specialized equipment installation and workforce training programs. Ownership is structured with Toyota Motor North America holding 90% equity and Toyota Tsusho America contributing 10%, focusing on raw material sourcing to streamline supply chains. Upon full operation, the facility is projected to employ around 5,100 workers, including engineers, technicians, and support staff, with hiring already underway—over 1,200 team members were on board by mid-2025. These jobs offer competitive wages, comprehensive benefits, and opportunities for career advancement in a high-tech environment.
Beyond direct employment, the project is expected to generate thousands of indirect jobs in logistics, supplier networks, and local services, injecting billions into the regional economy. Toyota has also committed $2 million through its “Driving Possibilities” initiative to support community education and workforce development, including partnerships with local schools and vocational programs. North Carolina Governor Josh Stein highlighted the plant’s role in advancing the state’s automotive sector and clean energy ambitions, noting its potential to position the region as a hub for EV innovation. Local officials in Randolph County, where Liberty is located, have praised the development for revitalizing rural areas and fostering long-term growth, with the facility’s amenities—like on-site childcare, a pharmacy, medical clinic, and fitness center—designed to attract and retain talent while enhancing work-life balance.
Executive Perspective on This Historic Milestone
Tetsuo Ogawa, president and chief executive officer of Toyota Motor North America, described the plant’s opening and the accompanying $10 billion investment as a pivotal historical milestone for the company. Speaking at the ribbon-cutting ceremony, Ogawa underscored Toyota’s unwavering dedication to its U.S. stakeholders, including employees, customers, dealers, suppliers, and surrounding communities.
He emphasized the company’s multi-pathway approach to electrification, which balances hybrids, plug-in hybrids, and full EVs to cater to varied consumer preferences and infrastructure realities. This investment demonstrates our confidence in the U.S. market and our commitment to producing high-quality, sustainable vehicles right here at home,” Ogawa stated, highlighting how the North Carolina facility will enable faster innovation cycles and reduce dependency on overseas imports.
Under his leadership, Toyota North America has overseen rapid expansion, with electrified vehicle sales reaching 1 million units in the U.S. last year—accounting for 43% of total sales—and projections to exceed 50% in 2025. Ogawa also pointed to the plant’s safety features, including energy containment systems, thermal monitoring, and specialized training for handling lithium-ion components, ensuring operations meet the highest industry standards. This move positions Toyota to navigate challenges like fluctuating raw material costs and geopolitical tensions, while continuing to lead in hybrid technology that has defined its success for over two decades.
Navigating U.S. Tariffs and Trade Dynamics
Toyota’s bold U.S. expansion occurs against a backdrop of evolving trade policies aimed at bolstering domestic manufacturing. In September 2025, President Donald Trump signed an executive order lowering tariffs on Japanese automobile imports from an initial 27.5% proposal to 15%, implementing a bilateral agreement reached earlier in the year to address the U.S. trade imbalance with Japan, which stood at over $60 billion in auto-related deficits annually. Although this reduction offers relief for exporters, the 15% rate remains substantially higher—six times the pre-April 2025 level of 2.5%—prompting Japanese automakers to accelerate localization efforts.
For Toyota, which exported about 1.5 million vehicles from Japan to the U.S. last year, the tariffs have increased costs and squeezed margins, contributing to industry-wide revenue losses of around ¥1.5 trillion for seven major Japanese brands in the first half of 2025. In response, discussions have intensified around importing more U.S.-produced vehicles back to Japan, potentially creating a circular trade flow that eases deficit pressures. Toyota’s strategy includes leveraging its American plants to assemble tariff-free exports, with the North Carolina batteries playing a central role in cost efficiencies.
Broader policy shifts under the Trump administration, such as proposals to eliminate EV tax credits and federal charging incentives, add uncertainty, yet Toyota remains focused on customer-driven electrification. The company’s hybrids, less reliant on subsidies, have proven resilient, helping it outperform rivals amid these changes. This investment could serve as a bargaining chip in ongoing trade talks, where Japanese firms have pledged around $550 billion in U.S. projects to secure tariff concessions, further solidifying Toyota’s integrated North American operations.
