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Toyota Motor Corp. has begun production at its new $13.9 billion battery plant in Liberty, North Carolina, marking a major step in the automaker's U.S. manufacturing strategy. The Japanese company also confirmed plans to invest an additional $10 billion in its American operations over the next five years, a figure higher than previously expected.
The new facility, Toyota's first in-house battery plant outside Japan, will supply lithium-ion batteries for hybrid and fully electric vehicles. Announced in late 2021, the project aligns with ongoing efforts to localize battery production amid shifting U.S. energy policies and tariffs affecting imports. "This is a pivotal moment in Toyota's history," said Tetsuo Ogawa, CEO of Toyota Motor North America. "It strengthens our ability to build the future of mobility right here in America."
The 1,850-acre site will employ roughly 5,000 workers once fully operational and feature 14 production lines capable of producing 30 gigawatt-hours annually. Initial output will power hybrid models of the Camry, Corolla Cross, and RAV4, as well as an upcoming all-electric, three-row SUV.
Toyota's latest investment follows President Donald Trump's announcement last month that the automaker planned a $10 billion U.S. expansion. While Toyota has been slower than some rivals to fully embrace electric vehicles, the company's dominance in hybrid sales, commanding over 51% of the U.S. market this year, according to Motor Intelligence, positions it strongly in a cooling EV market.
"We know there is no single path to progress," Ogawa said. "That's why our strategy includes fuel-efficient gas engines, hybrids, plug-in hybrids, battery electrics, and fuel cells."
The company's U.S. sales rose 9.9% through the third quarter to 1.3 million vehicles, supported by growing consumer demand for hybrids as EV tax incentives shrink and fuel economy rules face revision. Transportation Secretary Sean Duffy, attending the opening, said the administration will propose easing fuel-efficiency standards introduced under the previous government, calling them "too aggressive for today's realities."
With total U.S. investment now exceeding $60 billion, Toyota says the Liberty plant represents both a manufacturing milestone and a long-term commitment to the American auto market.
