Toyota Accelerates Global EV and Battery Production Expansion

Toyota is making significant strides in electric vehicle and battery manufacturing by establishing a new partnership with the Shanghai government. The automaker is setting up operations in the Jinshan district of southwest Shanghai to produce new Lexus EVs starting in 2027, with an anticipated production capacity of 100,000 vehicles per year and the creation of around 1,000 jobs.

In parallel with its efforts in China, Toyota will soon launch a major battery production facility in North Carolina. This $14 billion investment is geared toward manufacturing batteries for electric vehicles, hybrids, and plug-in cars, with initial shipments set to begin in April for the North American market and creating approximately 5,000 jobs.

The company’s vigorous expansion underscores its response to criticisms that it has lagged behind competitors like Tesla and BYD during a period of booming Chinese EV growth and heightened global focus on sustainability. While Toyota is leveraging its established partnerships with China’s FAW Group Co. and Guangzhou Automobile Group Co., its new venture aims to further contribute to China's carbon neutrality targets by 2060 through locally led development of battery electric vehicles tailored to the needs of Chinese consumers.

Amid these developments, Toyota reported a substantial fiscal third quarter profit increase of 61% year-over-year, reaching 2.19 trillion yen on sales of 12.4 trillion yen. The profit recovery follows production disruptions in Japan due to a previous certification scandal, and the company has revised its full-year profit forecast upwards, reflecting the benefits of cost reduction measures and favorable exchange rates.