Toyota Expands EV Production With New Fukuoka Battery Plant: Report

Toyota Motor Corp TM reportedly plans to construct a new battery plant for electric vehicles in the southwestern region of Fukuoka, aiming to bolster its EV production capabilities.

The plant will supply batteries to a facility dedicated to manufacturing luxury Lexus cars, according to a report from Reuters.

The automaker intends to transform Kyushu, the island where Fukuoka is situated, into a pivotal hub for its battery-powered vehicle supply chain and an export base for Asia.

A spokesperson for Toyota acknowledged awareness of a newspaper report to Reuters but noted that no official announcement had been made. The spokesperson added that Toyota is actively pursuing various strategies to enhance its EV battery production capacity.

Toyota currently manufactures Lexus vehicles at the Miyata plant, operated by its subsidiary Toyota Motor Kyushu. The company has previously stated its goal to roll out EVs with next-generation batteries globally starting in 2026, produced by its EV-centric unit, BEV Factory.

Also Read: Tesla, Ford Lose Market Share In EU Even As Overall Car Registrations Rise: Toyota And Other Japanese Players Gain

This unit is anticipated to contribute nearly half of Toyota’s target to sell 3.5 million EVs annually by 2030. In 2023, Toyota sold 104,000 EVs.

Details regarding the financial investment for the new battery plant and its construction timeline remain undisclosed. The report indicated that Primearth EV Energy, another Toyota subsidiary specializing in batteries for hybrids and plug-in hybrids, will operate the plant.

Toyota stock has gained more than 17% in the last 12 months. Investors can gain exposure to the stock via ActivePassive International Equity ETF APIE and Avantis International Large Cap Value ETF AVIV.

Price Action: TM shares closed lower by 0.99% at $195.25 on Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo via Shutterstock

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