Japanese automaker Toyota has confirmed a $10 billion (Ksh.1.2 trillion) investment in the United States over the next five years, expanding its footprint in the world’s largest auto market. The announcement coincided with the opening of Toyota’s first US lithium-ion battery factory for electric and hybrid vehicles in North Carolina.
The North Carolina facility marks Toyota’s eleventh manufacturing plant in the US, representing a total investment of nearly $14 billion and creating up to 5,100 new jobs. This move aligns with Toyota’s long-term strategy to strengthen its position in electric vehicle (EV) production while supporting local manufacturing.
The announcement follows earlier remarks by former President Donald Trump, who in October 2019 mentioned that Toyota CEO Akio Toyoda had discussed a $10 billion investment plan during a visit to Tokyo. Toyota had initially played down the figure, with finance chief Kenta Kon stating it was “difficult to confirm the accuracy” of the amount.
With this new investment, Toyota’s total US expenditure since beginning operations nearly 70 years ago reaches nearly $60 billion. The move is also linked to trade negotiations, as Japan agreed in July to lower tariffs on vehicles to 15 percent from a previously threatened 25 percent, in exchange for expanding economic investments in the US.
Toyota has also indicated willingness to export vehicles made in its US plants to Japan, pending alignment of Japanese certification standards with US requirements. Last year, approximately half of Toyota vehicles sold in the US were imported, including around 281,000 units from Japan.
The investment underscores Toyota’s commitment to growth in the EV sector and to bolstering manufacturing in the US despite ongoing trade tensions and tariff challenges. The company recently also raised its operating income and net profit forecasts for the current fiscal year, demonstrating resilience in a shifting global auto market.
With EV demand rising and incentives for local production increasing, Toyota’s $10 billion investment marks a significant step in its global expansion strategy while creating thousands of jobs in the US.
