"Toyota To Assemble EV Batteries At More Auto Plants In Japan, U.S.; Automaker To Cut Costs By Building Bulky Packs Where They Are Installed" - Nikkei Asia
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Toyota Motor plans to start final assembly of electric vehicle batteries at three additional auto plants in Japan and the U.S. to cut costs. The assembly will begin at Toyota's Takaoka plant near Nagoya between spring and fall 2025, at its Miyata plant in western Japan the following winter, and at its Kentucky factory as early as spring 2026. This move aims to reduce the costs associated with transporting heavy finished battery packs.
January 19, 2024 | 4:48 pm
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Toyota Motor is expanding its in-house EV battery assembly to additional plants in Japan and the U.S., which is expected to reduce transportation costs and potentially improve profit margins.
By moving the final assembly of EV batteries closer to the point of installation, Toyota is likely to see a reduction in transportation costs, which can be significant for heavy items like batteries. This strategic move could lead to improved profit margins and make Toyota's EV production more competitive. Given the growing importance of EVs in the automotive market, this initiative is highly relevant and important for Toyota's future growth and profitability.
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