Toyota To Make Additional Investments In Hybrid EVs In The U.S.

While the push toward EV mandates has likely taken a massive detour thanks to the election of President Trump, it still doesn’t mean hybrid vehicles (as opposed to totally battery operated vehicles) won’t continue their popularity.

Hybrids have emerged over the last few years as the obvious choice for auto buyers looking for the benefits of EV range with the reliability that comes from traditional ICE vehicles.

And the proof of hybrid adoption is clear. While EV investment has been cut by major legacy automakers, companies like Toyota are working on investing in and expanding their hybrid production in the U.S.

In fact, Toyota Motor is considering further investments in North America for EV and hybrid battery production, potentially including a new factory, to strengthen its local supply chain for increased electrified vehicle output, according to Nikkei.

Sean Suggs, president of Toyota Battery Manufacturing North Carolina, said that if demand persists, “we may need to consider building more [production capacity], and that may include a different site.”

“We are going to let the customer drive how much we go forward with,” he added.

Toyota is already investing $13.9 billion in its North Carolina plant, now under construction. Suggs added that future investments depend on customer demand and industry trends over the next five to ten years.

Nikkei reports that Toyota aims to raise the share of electrified vehicle sales in North America from 50% to 80% by 2030, with local battery production helping reduce costs. Production of hybrid batteries at Toyota’s North Carolina plant is set for early 2025, with trial production for EV and plug-in hybrid batteries following in late 2025 and 2026, respectively.

Despite an 11% rise in U.S. EV sales in recent months, they still make up less than 10% of new-car sales. Toyota’s first U.S. EV plant in Kentucky is likely delayed from 2025 to early 2026.