Toyota to invest $10bn in US operations over five years as battery manufacturing plant opens in North Carolina

The planned investment was announced on November 13. Aimed at supporting future mobility efforts, this latest sum brings the company's total investment in the US to almost $60 billion since it launched operations in the US in the 1950s.

This announcement coincided with the opening ceremony for Toyota Battery Manufacturing, North Carolina (TBMNC), a 7 million sq. ft (650,000 sq. m) facility designed to produce lithium-ion batteries for Toyota cars.

This plant is Toyota’s 11^th in the US, and the its first and only battery plant outside of Japan. According to Toyota, the nearly $14 billion facility will create up to 5,100 new American jobs.

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Having broken ground on the construction project in 2021, Toyota North Carolina began shipping batteries in June 2025. Once the TBMNC site reaches full capacity, it will have 14 production lines supporting battery production for hybrid electric vehicles, battery electric vehicles and plug-in hybrid electric vehicles, and will be able to produce 30 GWh annually.

The batteries manufactured at TBMNC will power existing Toyota models such as the Camry HEV, Corolla Cross HEV, RAV4 HEV, as well as a “yet-to-be-announced all-electric 3-row BEV” which Toyota has said will be the first of its kind to be built in the US by Toyota.

“Today’s launch of Toyota’s first US battery plant and additional US investment up to $10 billion marks a pivotal moment in our company’s history,” said Ted Ogawa, president and chief executive officer at Toyota Motor North America (TMNA). “Toyota is a pioneer in electrified vehicles, and the company’s significant manufacturing investment in the US and North Carolina further solidifies our commitment to team members, customers, dealers, communities, and suppliers.”

Reshoring manufacturing in the US

Toyota’s latest move in North America has received praise from US secretary of transport Sean Duffy, who suggested it was indicative of a reshoring trend following encouragement from the US government under president Donald Trump for manufacturers to invest in US manufacturing. “Toyota’s move to expand production in North Carolina is the latest show of confidence in this administration’s efforts to reshore manufacturing, generate new, great paying jobs, and inject billions of dollars into the economy,” said Duffy.

Check out Automotive Logistics' full timeline of actions taken by OEMs to curb effects of tariffs

Since January, OEMs have been making strategic decisions to reshape their supply chains to mitigate against the effects of US president Donald Trump’s tariffs and trade shifts.

Toyota is not the first automotive manufacturer to announce significant investment in the US this year. In June, GM unveiled plans to invest $4 billion in its US manufacturing network over the next two years, shifting assembly away from Mexico and Canada in favour of localisation in the US.

Then in early October, reports claimed that Stellantis was set to invest $10 billion in US manufacturing, with Stellantis confirming in mid-October that it would in fact invest a total of $13 billion over the next four years to “grow its business in the critical United States market and to increase its domestic manufacturing footprint”.

While representatives of the US like Duffy have expressed support for manufacturing investments like these in the US, those representing its neighbours have not shared the same enthusiasm. Mélanie Joly, Canada’s minister of innovation, science and industry Mélanie Joly voiced her “extreme concern” and threatened legal action over Stellantis’ plan to move manufacturing of the Jeep Compass from its Brampton factory in Ontario, Canada to the soon-to-be-reopened Belvidere Assembly Plant in Illinois in the US.

On October 23, the government of Canada announced significant reductions to the import quotas of both GM and Stellantis in response to what it described as the automakers’ “unacceptable decisions to scale back their manufacturing presence in Canada, directly breaching their commitments to the country and Canadian workers.”

Read Automotive Logistics' full Automotive supply chain Q4 2025 outlook

Cost pressures have surged, impacting companies within the automotive supply chain, whilst tariff uncertainty and supply chain disruption persist.

Daniel Harrison, senior automotive analyst at Automotive Logistics, acknowledged that these reshoring efforts are indicative of a “more protectionist stance driven by Trump’s tariffs”.

“This has real implications for supporting tier suppliers and logistics providers as trade flows evolve and new routes emerge,” Harrison noted. He shared his belief that 2025’s final quarter will be defined by cost pressures, tariffs and trade uncertainty, and supply chain disruption.

“As the automotive industry continues to evolve, logistics providers must navigate these dynamic trends, adapting to tariff turmoil, nearshoring, industry restructuring and cost-cutting,” he said.