Toyota to invest $5.3 billion in EV battery supply

Toyota Motor said on Wednesday it would invest about 730 billion yen ($5.27 billion) in Japan and the United States for making batteries for fully electric vehicles.

When more facilities come on line between 2024 and 2026, the automaker’s battery production capacity in the two countries will be boosted by 40 gigawatt-hours, the automaker said.

“This investment is aimed at enabling Toyota to flexibly meet the needs of its various consumers in all nations and regions by providing multiple powertrains and providing as many options as possible,” it said in a statement.

Some green investors and environmental groups have said the automaker should move faster to introduce fully electric (or “battery electric”) vehicles, instead of clinging to the internal combustion engine in such powertrain configurations as the hybrid.

Automakers worldwide are investing billions of dollars to increase battery and electric vehicle production in the face of stricter environmental regulations.