Toyota Motor Corporation announced plans to establish an electric vehicle (EV) battery factory in Fukuoka, Kyushu, a move aimed at accelerating its electrification efforts and enhancing its competitiveness in the Asian market.
The factory will be operated by Toyota subsidiary Primearth EV Energy, supplying batteries to the nearby Lexus production facility. While specific details remain undisclosed, a Toyota representative confirmed ongoing initiatives to boost battery production capacity.
Strategically, the new factory will streamline Toyota’s supply chain, creating synergies with its Miyata Lexus assembly plant, which produces 430,000 vehicles annually, with 90% destined for export. Toyota envisions Kyushu as a core hub for its EV supply chain and an Asian export base. The region, known as Japan’s “Silicon Island,” hosts numerous semiconductor and sensor manufacturers, including TSMC and Sony, further reducing transportation costs and time for Toyota.
The Japanese government supports this initiative through subsidies under the Economic Security Promotion Act, aligning with Toyota’s broader plan to invest 5 trillion yen (approximately US$32 billion) in EV research and development by 2030.
Toyota aims to sell 3.5 million EVs annually by 2030, a significant leap from the 104,000 units sold in 2023. This investment comes amid stiff competition from Chinese EV manufacturers and production cuts by other Japanese automakers like Honda and Nissan in Asia. Toyota’s new factory in Kyushu is expected to not only increase EV production capacity but also foster technological advancements in the region, helping Toyota maintain its leading position in the global market.
