Toyota expands NC plant capital investment pledge to $5.9B

The planned manufacturing plant in Liberty has become the largest single economic-development project commitment in North Carolina history even though the first battery won’t be available until 2025.

The Toyota pledge exceeds the planned $5 billion Wolfspeed semiconductor manufacturing plant in Siler City.

“Toyota’s significant investment in our state, now nearly $6 billion, is terrific news and more evidence that North Carolina is a leader in the clean energy economy,” Gov. Roy Cooper said in a statement.

“Toyota believes in our world-class workforce to power its future success, and I appreciate this enormous commitment here.”

Wednesday’s commitment more than quadruples Toyota’s initial investment  of $1.29 billion, 1,750-job, which was announced in December 2021 for the Greensboro-Randolph County megasite. The investment was boosted in August to $3.8 billion and 2,100 jobs.

Production is expected to begin in 2025 at what will be 2 million square feet of space spread over three buildings. Two 500,000-square-foot buildings are dedicated to hybrid electric vehicle battery production, while a 1-million-square-foot building will be focused on electric vehicle battery production.

There will be initially six battery production lines — four for hybrid electric vehicles and two for battery electric vehicles.

The $2.1 billion expansion will feature two additional production buildings of an undetermined square footage size.

Toyota spokeswoman Emily Wilemon-Holland said there isn’t a direct employment component with the latest infrastructure expansion, but additional hiring is expected.

Toyota also announced plans to make a new electric SUV at its Kentucky plant, also starting in 2025.

The manufacturer said the SUVs, the first produced in the U.S., will be powered by batteries from the Liberty plant.

Holland said that while the two production decisions were made “independent of each other, we always expected that we would plan ahead for additional battery production as North Carolina becomes the production hub for North America.”

“We want to always provide a portfolio of options for customers. Some drivers aren’t ready for an EV, but we are seeing the trend moving in that direction and we’re acting as a result.”

State Senate leader Phil Berger, R-Rockingham, said the second Toyota expansion “confirms our status as a manufacturing powerhouse.”

“This expansion further cements our thriving partnership, and it wouldn’t be possible without the reforms the General Assembly implemented to transform North Carolina into a jobs-friendly state.”

Ted Ogawa, president and chief executive of Toyota Motor North America, said the Kentucky plant and North Carolina expansion shows the manufacturer’s commitment “to reducing carbon emissions as much as possible and as soon as possible.”

“To achieve this goal, customers must have access to a portfolio of options that meet their needs now and in the future.

“It is exciting to see our largest U.S. plant, Toyota Kentucky, and our newest plant, Toyota North Carolina, drive us into the future together with BEV and battery production for our expanding electrified lineup.”

The Liberty facility will be Toyota’s hub for developing and producing lithium-ion batteries needed for its expanding portfolio of electrified vehicles. 

“With this proactive infrastructure investment, we will be able to quickly support future expansion opportunities to meet growing customer need,” said Sean Suggs, president of Toyota Battery Manufacturing for N.C.

Toyota offers 22 electrified vehicle options in the U.S. across the Toyota and Lexus brands, the most among any automaker.

By 2025, the company plans to have an electrified option available for every Toyota and Lexus model globally.

The Toyota subsidiary plans to build lithium-ion batteries at the plant for about 200,000 hybrid and electric vehicles annually.

Toyota plans to roll out 30 battery electric vehicle models by 2030.

The Liberty plant is an example of Toyota “building things locally where they are sold,” said Norm Bafunno, senior vice president of Unit Manufacturing and Engineering at Toyota Motor North America.

“It’s not a 100% alignment, but we try to get as close as we can in our (production) footprint in the United States. We’re going to have to keep up with the North American consumer, and that begins in North Carolina.”

Toyota said it plans to start hiring production and maintenance positions in mid-2023. To apply for open positions, go to www.toyota.com/careers.

There are plans for in-person applicant assessment and interview locations in Asheboro and Greensboro through NCWorks locations.

As with the Dell Inc., Caterpillar Inc. and Herbalife Nutrition Ltd. manufacturing plants, Toyota is finding significant internal interest from employees willing to transfer to work at the Liberty plant.