Toyota Plans to Build EV Battery Plant in Japan for Lexus Luxury Brand
Toyota is reportedly planning to build a new EV battery plant in Japan specifically for its Lexus luxury brand, as reported by the Nikkei business daily. The plant is said to be located in Fukuoka, in Japan’s southwestern prefecture, with Kyushu being considered a central hub for Toyota’s EV supply chain. While details on the plant are currently limited, the move comes as other automakers are scaling back on their EV production targets.
1. Decrease in EV Production Targets by Automakers
French supplier OPmobility SE reported this week that EV output is 45% lower than initially expected. In line with this trend, General Motors recently announced a delay in their goal to have production capacity for one million EVs by 2025, while Ford is shifting focus from EVs to internal-combustion Super Duty pickup trucks at a Canadian assembly plant. The shift in strategy by these automakers underscores the challenges they face in meeting initial EV production targets.
2. Toyota’s EV Transformation Plans for Lexus
Back in 2023, Toyota announced plans to convert Lexus into a battery EV brand by 2035, signaling a commitment to electrification within its luxury lineup. However, the automaker may be flexible in the rate at which it transitions to all-electric vehicles, especially as other luxury brands like Audi, Mercedes-Benz, and Porsche consider extending the production of combustion models into the next decade. This indicates that the move towards electrification is not without challenges and may require adjustments along the way.
3. Introduction of Lexus EV Models
While Toyota has showcased some impressive Lexus EV concepts, the current Lexus EV available in the U.S. market is the RZ crossover. The RZ, which serves as a test for Toyota’s electric capabilities, is not a mass-market offering. In preparation for broader adoption of EVs, Lexus introduced the RZ 300e for the 2024 model year, offering a longer range of up to 266 miles compared to the initial RZ 450e variant with a maximum range of 220 miles. This expansion of the EV lineup signals Toyota’s commitment to increasing the presence of electric vehicles within the Lexus brand.
4. Expansion of Toyota Battery Plant in North Carolina
In addition to the new battery plant planned in Japan, Toyota is also investing in expanding a battery plant in North Carolina. This facility is slated to begin producing cells for hybrids and EVs in 2025, with a $2.5 billion expansion aimed at boosting capacity for EV battery production. Furthermore, Toyota has confirmed plans to introduce two three-row electric SUVs for production in the U.S. market in 2025 and 2026, demonstrating the company’s commitment to electrification in its product lineup.
Overall, Toyota’s decision to build a new EV battery plant in Japan for its Lexus luxury brand aligns with the growing trend towards electrification in the automotive industry. As automakers face challenges in meeting EV production targets, Toyota’s investment in battery production facilities and expansion of its electric vehicle lineup highlights the company’s commitment to leading the charge towards a more sustainable future in transportation.