Toyota Motor has officially started production at its new battery facility in North Carolina, marking a major step in the company’s expansion of hybrid manufacturing in the United States. The $13.9 billion site is now supplying hybrid batteries to factories in Kentucky and to the Mazda Toyota joint venture in Alabama, reinforcing the automaker’s multi-pathway strategy for electrification.
The announcement comes as Toyota confirms an additional $10 billion in U.S. manufacturing investment over the next five years, bringing its total commitment in the country to more than $60 billion. Company executives say the goal is to strengthen domestic capacity across hybrids, plug-in hybrids and future electric models.
New facility aims for large-scale battery output
The North Carolina plant, Toyota’s 11th factory in the United States, sits on a 1,850-acre site and is designed to reach an annual capacity of 30 GWh once fully operational. The facility will house 14 production lines serving both plug-in hybrid and full battery-electric models.
Batteries from the plant will power hybrid versions of Toyota’s best-selling vehicles, including the Camry, Corolla Cross and RAV4. Production will also support a future three-row battery-electric SUV that the company has yet to unveil. Toyota expects the facility to create around 5,000 jobs as operations expand over the next several years.
“Over the next five years, we are planning an additional investment of $10 billion in the U.S. to further grow our manufacturing capabilities,” said Toyota Motor North America President Ted Ogawa, highlighting the strategic importance of localizing battery production.
Political backdrop and shifting U.S. auto policies
The expansion aligns with recent remarks from U.S. President Donald Trump, who said during a visit to Japan that Toyota intends to deepen its American manufacturing footprint. Trump’s administration has criticized foreign auto imports and imposed significant tariffs in recent years, pressuring automakers to increase U.S. production.
Other policy shifts could also influence the direction of the industry. Transportation Secretary Sean Duffy said the administration plans to put forward new, less stringent fuel economy standards. Earlier this year, Duffy signed an order instructing regulators to rescind the rules issued under President Joe Biden for model years 2022 to 2031, which had called for steep reductions in fuel consumption.
These changes come as the administration has already removed tax credits and penalties that previously encouraged the adoption of electric vehicles. As a result, companies such as Volkswagen have signaled plans to increase hybrid offerings rather than rely solely on full EV growth.
Toyota sticks to its multi-pathway electrification strategy
Unlike competitors pushing aggressively toward all-electric lineups, Toyota continues to emphasize a diversified approach. The company has been slower to bring fully electric vehicles to market but has accelerated the hybridization of its top-selling models.
“We know there is no single path to progress,” Ogawa said. “That’s why we remain committed to offering fuel-efficient gas engines, hybrids, plug-in hybrids, battery electronics and fuel cell electronics.”
Toyota argues that the multi-pathway model allows it to scale electrification more broadly, especially in markets where charging infrastructure remains limited. Hybrids have also seen renewed interest from consumers amid policy uncertainty and the rollback of federal EV incentives.
