To compete with BYD and other emerging Chinese electric vehicle manufacturers, Toyota intends to construct a new EV battery plant on “Silicon Island” in Japan.
In addition to providing batteries for Toyota’s luxury Lexus brand, the factory will fortify its EV supply chain.
The island is known as “Silicon Island” since it is the location of numerous semiconductor and auto factories. The largest contract chip manufacturer in the world, Taiwan Semiconductor Manufacturing Co. (TSMC), just completed its second facility on the island.
This initiative is part of Toyota’s larger aim to strengthen its EV supply chain and turn Kyushu into a regional hub for battery-powered vehicle production and exports in Asia.
The development was revealed by the Nikkei Business Daily on Friday, although Toyota has yet to confirm the information.
According to the report, the automaker will purchase land in an industrial park being developed by the Fukuoka prefectural government in northern Kyushu. Toyota’s battery manufacturing affiliate, Primearth EV Energy, will run the new factory.
Japan’s Ministry of Economy, Trade, and Industry is anticipated to subsidise the plant under the Economic Security Promotion Act.
A corporate spokeswoman acknowledged the Nikkei report, but said, “This is not something we have announced yet.”
Toyota has been aggressive in developing its EV battery production capacity to suit the growing global demand for electric vehicles.
Toyota’s new plant will assist boost exports to Asia by expanding its EV supply chain. The site is 25 miles (40 kilometres) from Toyota’s Miyata facility, which produces Lexus vehicles primarily for export.
Newsng gathered that the facility will be the primary supplier to the Miyata factory. The plant has an annual capacity of up to 430,000, with 90% exported.
We earlier reported that Toyota plans to introduce its first EV with autonomous driving capabilities in China following a steep decline in exports to the nation.
