Toyota has announced an investment of approximately $3.4 billion (380 billion yen) into vehicle batteries in the U.S. through 2030. It will aid the development and localization of automotive battery production, including those for BEVs, and is part of the previously-announced $13.5 billion (1.5 trillion yen) set aside for investment in battery development.

To drive this localization, Toyota Motor North America also announced that it will establish a new company and build an automotive battery plant with Toyota Tsusho in the U.S. Aiming to start production in 2025, the project includes an investment of approximately $1.29 billion through 2031, which includes funds that will be used to develop land and build facilities.

Part of the new company’s activities will include helping Toyota to further develop and expand its local supply chain and production knowledge related to Lithium-ion automotive batteries. Initially, the venture will focus on producing batteries for hybrid electric vehicles. Toyota also expects the move to further its carbon neutrality goals.

Further details of the project, including details on a site, production capacity and business structure will be shared at a future time.