Toyota Motor Corp. said Wednesday it will more than double its investment in a battery plant in North Carolina as part of a broader effort to catch up with rivals in the electric vehicle space.
automakers said they would invest another $2.5 billion A planned factory near Greensboro will have an expansion that will create an additional 350 jobs. It now plans to spend a total of $3.8 billion on the plant and employ 2,100 people.
Norm Bafunno, senior vice president of Toyota Motor North America, said: in a statement.
Toyota pioneered hybrid vehicles that use electric motors and gasoline engines to reduce fuel consumption, but has lagged behind many automakers in its commitment to a full transition to electric cars and trucks.
General Motors just started production at its battery plant in Ohio and has two other battery plants under construction. Ford Motor is building two battery plants in Kentucky and one in Tennessee, and Stellantis is building one in Indiana.
A recently approved anti-inflation law increased incentives for such factories by tying subsidies for EV purchases to the amount of vehicle batteries made in North America.
Toyota announced plans to build a battery plant in North Carolina in December, investing $1.29 billion and hiring 1,750 workers.
In a statement Wednesday, Toyota said it is spending $70 billion globally on its electrification strategy, including $5.6 billion on battery production.