Toyota Motor Corp. has postponed plans for a new battery plant in southwestern Japan, reflecting the world’s largest automaker’s recalibration of its electric vehicle strategy amid uncertain global demand.
Toyota President Koji Sato met with Fukuoka Governor Seitaro Hattori on Tuesday to discuss the delay. The location agreement, initially scheduled for April, is now expected by fall, with potential impacts on the planned 2028 operational start date still unclear.
While Toyota remains committed to eventually building the facility, the company is reassessing both the products to be manufactured and the scale of operations. The plant was originally intended to produce batteries for next-generation EVs with a range of 1,000 kilometers, significantly outperforming current models.
The delay comes as Toyota has repeatedly scaled back its EV targets. Initially planning for 1.5 million annual EV sales by 2026, the company reduced this goal to 1 million last year and further down to 800,000 this year. Toyota’s EV sales in 2024 reached only about 140,000 vehicles, representing just 1.4% of the global market.
Instead, Toyota continues to prioritize hybrid vehicles, which saw global sales jump 21% to 4.14 million units last year, capturing an estimated 60% market share.
The company is pursuing a mixed strategy globally, starting production at its first North American battery plant in North Carolina next month and building a wholly owned Lexus EV plant in Shanghai slated to open in 2027.
