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Apr 02, 2023

Japanese automaker ups investment to battery plant

Managing Editor A Toyota logo appears on a screen as a visitor watches a video

Managing Editor

A Toyota logo appears on a screen as a visitor watches a video showing the assembly line of a Toyota Motor Corp.'s plant at the automaker's exhibition hall in Toyota, central Japan, Thursday, March 4, 2010.

(The Center Square) – Toyota, the multinational automotive manufacturer headquartered in Japan, says it is investing an additional $2.1 billion in a North Carolina battery plant under construction in Liberty at the Greensboro-Randolph Megasite.

That pushes the total investment there to $5.9 billion, with batteries supplied to Toyota Kentucky – the company's largest manufacturing site in America.

Both Republican General Assembly chamber leaders praised the addition, as did the Democratic governor. Coltura, an environmental watchdog group, warns of pollution through carbon emissions, and adds if a battery disposal is on site also by toxic waste.

Toyota says it will produce lithium-ion batteries for electric vehicles at the Piedmont site within 650 miles of half the U.S. population that easily accesses regional interstates I-40, I-85, I-77, I-73 and I-74. The automaker is assembling new three-row battery electric SUVs at Toyota Kentucky, in Georgetown, in 2025.

In December 2021, North Carolina incentives for the announcement of the plant were $271.4 million. Toyota said it would invest $1.3 billion, and bring 1,750 jobs at a median salary of $62,234. The company investment climbed to $5.6 billion in August, with an additional 350 jobs – 2,100 total.

Last July, the budget adoption by the General Assembly included $225 million appropriation for the second phase of the battery plant and cited 5,000 jobs. Toyota production lines in the plans have gone from four for hybrid electric vehicles to six that includes the four HEV and two battery electric vehicles. The permit application is for seven.

The Coltura report cites lithium ion battery concerns, and says up front "battery technology is advancing quickly, and EV battery components may be very different in the near future." Thus, the concerns may not be forever. For now, Coltura said in the report its "primary concerns" are labor practices mining cobalt; environmental impacts of extracting lithium; sufficient supply of materials for EV batteries; carbon emissions from battery manufacture; and toxic waste from disposal of used batteries.

Gov. Roy Cooper said the Old North State is "leading the way in the clean energy economy." In separate statements, state Senate President Phil Berger from nearby Eden said the state is confirmed "as a manufacturing powerhouse." Cleveland County House Speaker Tim Moore said the partnership the state and Toyota "will transform the future for North Carolina."

Ted Ogawa, president and CEO of Toyota Motor North America, said, "It is exciting to see our largest U.S. plant, Toyota Kentucky, and our newest plant, Toyota North Carolina, drive us into the future together with BEV and battery production for our expanding electrified lineup."

An announcement earlier this year brought the total for taxpayer-funded incentives in the electric vehicle industry in North Carolina over the last two years to more than $632.4 million.

The Old North State has a long road ahead to meet Cooper's goal of 1.25 million EVs by 2030. House Democrats proposed legislation to require new homes to accommodate the trend; the bill died before legislative crossover deadline.

For context, North Carolina would need to add more than 170,000 electric vehicle registrations per year over the next seven years to meet the 1.25 million registration goal. Last year's jump of 13,377 lifted the total to 38,374 on Dec. 31, according to North Carolina Department of Transportation data.

There are roughly 8 million gasoline and diesel vehicles registered for North Carolina's roads.

Managing Editor

Alan Wooten has been a publisher, general manager and editor. His work has won national or state awards in every decade since the 1980s. He's a proud graduate of Elon University and Farmville Central High in North Carolina.