Toyota Charges Ahead: Plans for New Lexus EV Battery Plant in Japan Amidst Industry Shifts

According to Nikkei's business report on Friday, Toyota is rumored to be constructing a facility in Japan dedicated to producing electric vehicle batteries specifically for its high-end Lexus division.

According to a dispatch from Reuters, the announcement indicated that Toyota plans to establish its latest battery facility in the Fukuoka Prefecture, situated in the southwest of Japan. The report, however, did not elaborate further. The report also noted that Toyota considers the island of Kyushu, which houses Fukuoka, as a vital node in its electric vehicle production network.

Concept vehicle Lexus LF-Z Electrified

This update arrives while other car manufacturers are scaling down their electric vehicle (EV) production goals. OPmobility SE, a French component provider, indicated this week that EV production is falling short by 45% compared to projected figures. General Motors has made public its decision to postpone its original 2025 objective of achieving a production capacity for a million EVs. Concurrently, Ford is shifting the focus of a Canadian manufacturing facility from electric vehicles to the production of Super Duty pickup trucks with traditional internal combustion engines.

In 2023, Toyota announced plans to evolve Lexus into a fully electric vehicle brand by the year 2035, though the progression towards this target could be adjusted. Competing high-end car manufacturers such as Audi, Mercedes-Benz, and Porsche have also mentioned the possibility of continuing to produce vehicles with internal combustion engines into the 2030s while transitioning to an all-electric lineup. Moreover, in 2021, Toyota suggested that even by 2030, 85% of its vehicles sold in the U.S. would continue to have exhaust systems.

2024 Model of Lexus RZ

Despite presenting some impressive ideas, the RZ crossover remains the sole electric vehicle from Lexus available in the U.S. market, serving more as an experimental venture rather than a mainstream product. For the 2024 model year, Lexus introduced a more affordable RZ model with an extended range, the RZ 300e, which can travel up to 266 miles on a single charge, surpassing the initial RZ 450e version's limit of 220 miles.

A production facility for Toyota batteries in North Carolina is on track to commence manufacturing units for hybrid and electric vehicles by 2025. Toyota has revealed plans for a significant $2.5 billion enlargement of this yet-to-be-completed plant, aiming to boost the production capabilities for electric vehicle batteries. Additionally, Toyota has disclosed the launch of two new electric SUVs with three rows of seating for the American market, scheduled for 2025 and 2026.

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