Toyota to invest $3.8 billion in U.S. battery plant

STORY: Toyota will triple its planned investment in a new U.S. battery plant.

The automaker said Wednesday (August 31) it would now spend $3.8 billion, up from just under $1.3 billion.

Toyota said it would partner with Panasonic at the plant in Liberty, North Carolina through its joint venture called Prime Planet Energy & Solutions - or PPES.

The Liberty facility is due to open in 2025.

Toyota said PPES would provide expertise in battery making technology and equipment.

The Japanese carmaker plans to add two production lines dedicated to making batteries for fully electric vehicles at the Liberty plant, it said Thursday (August 31).

That's added to the four lines it already planned to make smaller batteries for hybrid vehicles like the Prius.

Toyota's higher investment comes after the recent passage of the U.S. Inflation Reduction Act.

It provides incentives for manufacturers and tax credits to consumers aimed at boosting local content in EVs and batteries.