Toyota Plans to Spend $9 Billion on EV Battery Factories

Toyota revealed this morning they plan to spend $9 billion in the next decade on electric vehicle battery plants. The company is estimating they will be selling around two million electric vehicles by 2030.

While in the past, Toyota has avoided funding electric vehicles, recent developments in charging time and battery life seem to have changed their mind.

These factories won’t just be in Asia, Toyota is planning to build them all around the world. (This is great for supply chain issues in case of future political problems.)

Masamichi Okada, Toyota’s chief production officer, said “We want to localize production as a general principle.”

Competitors like Ford, GM, and Volkswagen also have plans to build electric vehicle factories.

The $9 billion earmarked for battery plants by Toyota is part of a $13.5 billion dollar initiative. The remaining $4.5 billion is slated for research.

This is fantastic news for companies like Romeo Power (#3 on this list) who have been having supply issues with battery cells. Additional battery factories means less strain on current factory infrastructure, which is a tide that rises all boats.

In case you missed it: Romeo Power recently signed a deal with LG to build a production line for electric batteries. They reportedly paid $64.7 million to LG secure the assembly line. If Romeo was happy with that level of battery production, imagine how thrilled they are with $9 billion in factories.

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