Toyota Just Fired Up a $14 Billion Battery Factory in North Carolina and Promised Another $10 Billion

Toyota started production Wednesday at its massive new battery plant in Liberty, North Carolina, and dropped the news that it’s throwing another $10 billion at U.S. operations over the next five years. This $13.9 billion facility is Toyota’s first battery plant outside Japan and creates over 5,000 jobs making batteries for hybrids and electric vehicles.

• Liberty’s 1,850-acre battery plant can crank out 30 gigawatt-hours annually when running at full capacity, enough to power hundreds of thousands of vehicles.
• Four production lines started shipping hybrid batteries to Kentucky and Alabama this month, with 10 more lines coming online by 2030 for plug-ins and full EVs.
• Workers get on-site childcare, medical clinics, pharmacies, and fitness centers as part of Toyota’s push to create factory jobs people actually want.

What Toyota Built in North Carolina

This 1,850-acre site can crank out 30 gigawatt-hours of batteries annually when running at full capacity. That’s enough to power a lot of Camrys, RAV4s, and Corolla Crosses. Toyota’s also building an all-electric three-row SUV that’ll use batteries from this plant, which will be the first time Toyota’s made a big electric SUV in America. Fourteen production lines handle lithium-ion batteries for regular hybrids, plug-in hybrids, and full battery-electric vehicles.

Right now, four lines are operational and already shipping hybrid-electric modules to Toyota Kentucky and the Mazda Toyota joint facility in Alabama. Batteries coming off those lines power the Camry hybrid, Corolla Cross hybrid, and RAV4 hybrid. Additional production lines roll out through 2030, with some dedicated to plug-in and full electric vehicle batteries.

Toyota’s approach differs from other automakers who went all-in on pure electric. Ted Ogawa, Toyota’s North America CEO, said they’re taking a “multi-pathway” strategy, producing hybrids, plug-ins, and full EVs to meet different customer needs and price points. Right now Toyota sits at about 50% electrified vehicles, and they’re aiming for 70% by 2030. Your local Toyota dealer will start seeing more electrified options as this plant ramps up production over the next few years.

Jobs That Don’t Suck

Toyota’s stacking up benefits to convince people to work there. On-site childcare, a pharmacy, a medical clinic, and a fitness center all come with the job. That’s a step up from most factory jobs. Don Stewart, Toyota North Carolina president, said one of his goals is “to create a company that you’d want your son or daughter to work at.” So far the plant has hired over 1,200 employees and plans to hit 5,100 workers by 2034.

Ann Souter, the plant’s general manager of manufacturing, mentioned they’re learning directly from Toyota’s Japan operations to make sure the Liberty facility runs at global standards. Workers train on the same battery types already made in Japan, which helps them skill up faster than if they were figuring everything out from scratch.

The Money Behind It

Timing lines up with Toyota betting bigger on electrification after years of focusing on hybrids and hydrogen. An extra $10 billion investment brings Toyota’s total U.S. spending to nearly $60 billion since the company started operating here 70 years ago. North Carolina Governor Josh Stein showed up for the announcement, talking about clean energy jobs and positioning the state as a leader in automotive supply chains.

U.S. Transportation Secretary Sean Duffy called the nearly $14 billion investment “a turning point for the Piedmont Triad region,” saying it shows confidence in efforts to bring manufacturing back to America. Local officials say landing a plant this size from a company like Toyota acts as an endorsement that’s already getting other businesses to look at the area.

Running on 100% renewable energy, the plant fits into Toyota’s plan for hitting carbon neutrality by 2050. They also dropped $2.7 million on STEM education programs for Asheboro and Guilford County schools, on top of earlier donations and a $500,000 grant to North Carolina A&T State University for workforce development.

What Happens Next

Toyota said they’re planning to roll out 30 battery electric vehicle models globally by 2030. Liberty plant sits at the center of that plan, especially for North American production. David Christ, group vice president for Toyota, mentioned that going from 50% to 70% electrified vehicles “could fuel additional expansion here at the plant.”

Whether buyers actually want electric three-row Toyotas remains to be seen, but the factory’s ready either way. Toyota’s betting that offering multiple options instead of forcing everyone into pure electric gives them flexibility as the market figures out what it wants. A vertically integrated setup handles cathode and anode processing, cell production, and module assembly all under one roof, which is uncommon among competitors and helps keep costs down.