Toyota launches $14 billion US megafactory for electric vehicles as sales surge

Toyota has activated a $14 billion battery manufacturing facility in Liberty, North Carolina. This is the Japanese car manufacturer's fi...

Toyota has activated a $14 billion battery manufacturing facility in Liberty, North Carolina.

This is the Japanese car manufacturer's first battery facility located outside of Japan and represents the company's largest single-site investment to date. Toyota plans to employ 5,000 workers.

The plant is part of a major transformation for car manufacturers.

A shadow has been cast on the future of fully electric vehicles — theThe government's $7,500 tax incentive concluded, car manufacturers have been firing American workers who assembled electric vehicles, and some firmsmight discontinue money-losing cars. 

However, Toyota's strategy is distinct: it is embracing the surge in hybrid vehicle sales.

Toyota has introduced more vehicles with electrified powertrains onto the roads than any other car manufacturer," Emily Holland, a representative from Toyota, stated to the Daily Mail. "Hybrid models serve as a starting point for vehicle electrification.

The North Carolina facility will produce lithium-ion batteries for three product categories — hybrid vehicles, plug-in hybrids, and fully electric cars — with the majority of production focused on hybrids that Toyota is struggling to manufacture quickly.

This year, over half of Toyota's vehicles sold in the United States feature an electrified powertrain.

And several top-selling Toyota models are now available only as hybrids. Thestill-popular Camry now only available with a hybrid option, and the RAV4, America's top-selling non-pickup vehicle, willremove the gas-only version in 2026. 

In North Carolina, only four out of the 14 new lines at the facility are currently operational, which is sufficient to produce battery packs for approximately 600,000 hybrid vehicles annually, including the Toyota Camry manufactured in Kentucky and the Corolla Cross SUV made in Alabama.

In the meantime, the plant's charging and electric vehicle infrastructure is still relatively limited.

Toyota is expanding its production to accommodate roughly 74,000 plug-in hybrid vehicles and only 45,000 all-electric cars.

Those cells will ultimately provide energy for anew three-row, American-made electric SUVthat Toyota has not yet disclosed. The company mentioned to the Daily Mail that it is set to be released in late 2026.

It's a careful strategy that Toyota leaders claim aligns with where American consumers truly stand.

"Toyota has been a leader in electric vehicles, and the company's substantial manufacturing investment in the United States, particularly in North Carolina, reinforces our dedication to employees, customers, dealers, communities, and suppliers," said Ted Ogawa, the company's chief executive based in the US.

This significant investment occurs alongside a changing political and economic environment for car manufacturers.

Toyota started construction on the facility in 2021, during a time when the Biden government was prioritizing the development of battery production within the United States.

However, the sales of fully electric vehicles in the US have not increased as quickly as officials had anticipated.

Last month, President Donald Trump mentioned that Toyota would invest $10 billion in the United States, although the company did not specify how the new facility connects to its broader financial commitments.

At the same time, the sector is dealing with Trump's broad-based taxes on vehicles and components.

Vehicles manufactured in Japan — such as roughly 30 percent of the Toyotas sold at American dealerships — face a 15 percent tax when entering the US.

Toyota's pricing has upset Detroit car manufacturers, who frequently end up paying higher tariffs on vehicles assembled in the US.

And import duties haven't hindered Toyota's progress.

U.S. sales have increased by 9.9 percent during the third quarter — over 1.3 million cars — with hybrids being a major factor, as the company is struggling to keep up with demand.

The car manufacturer holds the industry's lowest days-on-lot figure, which indicates how fast cars are sold once they reach dealerships.

With four operational production lines running in North Carolina and ten additional ones planned, Toyota's strategy is evident: although the future may lean towards electric vehicles, the market for hybrids is still strong.

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