Toyota announces new $8 billion investment in NC battery plant, 3,000 additional jobs
Toyota announced Tuesday morning that it is investing an additional $8 billion to its under-construction North Carolina battery plant, adding an additional 3,000 new jobs.
The company said its total investment in the Randolph County facility will now reach $13.9 billion. The number of new jobs expected to be created now totals 5,000.
It said it is adding eight battery production lines to the six the company had previously planned.
“Through the last few years of building relationships, including my most recent trip to Tokyo ... our partnership with Toyota has become stronger than ever, culminating in this historic announcement,” said Gov. Roy Cooper. “North Carolina’s transition to a clean energy economy is bringing better paying jobs that will support our families and communities for decades to come.”
In December 2021, Toyota first announced plans for a major North Carolina battery plant on a 1,800-acre megasite about 20 miles southeast of Greensboro near the town of Liberty. The initial promise was to create 1,750 jobs and invest $1.29 billion at the site.
“It just continues to grow based on what we believe in the next five to 10 years we are going to need for the customer,” said Toyota Battery Manufacturing North Carolina President Sean Suggs during a press conference at the Liberty site.
The facility will manufacture three types of lithium-ion batteries: for hybrid, plug-in and all-electric vehicles. Toyota plans to ship its first batteries from the site in January 2025. They will be used in a three-seat SUV manufactured in Kentucky.
Asked about the competition for labor from other manufacturers in the area, including VinFast and Wolfspeed, Suggs said Toyota is confident it will find the workers.
“We believe there’s a big old ocean for everyone to find talent,” he said. “We believe there’s enough there for all of us to share.”
Construction is underway at the Liberty plant. Suggs said around 1,700 construction workers are on site daily, and three buildings are already enclosed.
Between state and local incentives, Toyota was poised to receive around $439 million in payroll tax breaks if it meets its minimum investment and job creation targets by 2029. By increasing its hiring and investment goals, the carmaker is eligible for a second phase of incentives worth another $225 million.
“I don’t anticipate asking for any more incentives from the state,” Suggs said.
Toyota expects to complete the Randolph County plant by 2030. By then, it will occupy about 1,000 acres.
Toyota currently sources lithium from outside the United States. The lithium that goes into the batteries in North Carolina will come from a lot of different international locations, Suggs said.
Asked if the automaker was looking for a domestic source of lithium, Suggs said, “Oh yeah. We are searching high and low.”
Two companies — Albemarle Corp. and Piedmont Lithium — are seeking to expand or revive operations in North Carolina.
Last month, the U.S. Department of Defense approved a $90 million grant to support expansion of mining and production of lithium for Charlotte-based chemical company Albemarle Corp. The money will be used to purchase a fleet of mining equipment as part of the company’s planned reopening of its lithium mine in Kings Mountain, N.C. It’s expected to reopen by late 2026.
In March, Albemarle said it will invest $1.3 billion and create more than 300 jobs to build a “Mega-Flex” lithium hydroxide processing facility on 800 acres in Richburg, S.C., in Chester County. Construction is expected to begin next year.
Last December, Albemarle Corp. said it would invest $200 million and create at least 200 jobs by establishing an advanced materials research and development facility in the University City area of Charlotte focused on lithium and battery tech. The facility is expected to open in early 2025.
Piedmont Lithium, based in Belmont, wants to build mines and process lithium on 1,548 acres in Cherryville in Gaston County.
The company’s goal is to begin construction in 2025 and begin production in 2027. It would create about 500 jobs. However, over the past five years since the project was proposed, it has been met with opposition from local residents and business owners concerned about the environment, quality of life and property values.
Last week, a company based in Mumbai, India, announced that it would build a facility near Wilmington to produce graphite anode, a key component of lithium-ion batteries. Epsilon Advanced Materials expects to employ 500 people.
This story was originally published October 31, 2023 at 9:31 AM.
