Toyota to spend $3.4 billion on U.S. automotive batteries through 2030

Toyota Motor’s North American unit said Monday it will invest about $3.4 billion (380 billion yen) on U.S. automotive battery development and production in the United States through 2030.

The automaker said it plans to create a new company and build a new U.S. automotive battery plant along with Toyota Tsusho, the automaker’s metals trading arm and a unit of the Toyota Group.

The new plant, which consists of a planned $1.29 billion investment through 2031, intends to begin production in 2025 and is expected to create 1,750 new U.S. jobs.

Toyota North America CEO Ted Ogawa said the investment will help usher in more affordable electrified vehicles for consumers in the US.