Toyota to Invest $2 Billion in Electric Vehicle Manufacturing in China

Japanese automaker Toyota Motor has signed an agreement to establish a wholly-owned electric vehicle and electric vehicle battery manufacturing plant in Shanghai, China, a strategic move to strengthen its presence in the world’s largest automotive market.

In the strategic cooperation agreement signed with the Shanghai municipal government, Toyota has committed to investing $2 billion (14.6 billion yuan) in a new energy vehicle project in the Jinshan District.

The new project will focus on the research, development, production, and sales of Lexus-branded electric vehicles and electric vehicle batteries, according to China’s Xinhua News Agency.

This marks another globally influential new energy vehicle project in Shanghai, following Tesla’s gigafactory in Shanghai, highlighting the city’s determination to accelerate the establishment of a world-class new energy vehicle manufacturing cluster.