Toyota is making an investment in Japan and the U.S. to boost production of electric vehicle batteries.
The automaker is putting $5.6 billion into the project with production set to start between 2024 and 2026.
In Japan, $3 billion will go into Toyota plants and property. In the U.S., about $2.5 billion will be invested in Toyota Battery Manufacturing in North Carolina.
The global demand for electric vehicles is expected to grow in coming years as gas prices rise and concerns grow about the environment.
Toyota RAV4 Prime electric car recharges its batteries. (Photo by Robert Nickelsberg/Getty Images / Getty Images)
Toyota has scored success with the Prius and other hybrid models, which have an engine as well as a battery-driven electric motor.
"This investment is aimed at enabling Toyota to flexibly meet the needs of its various customers in all countries and regions by offering multiple powertrains and providing as many options as possible," it said in a statement.
Toyota assembly line. ( Photographer: Luke Sharrett/Bloomberg via Getty Images / Getty Images)
Earlier this week, Japanese rival Honda Motor Co., along with major South Korean battery maker LG, announced they were investing $4.4 billion in a joint venture in the United States.
Earlier this month, General Motors and LG Energy Solution announced they were considering building a fourth battery cell manufacturing plant.
General Motors and LG Energy Solutions announced plans for a fourth battery plant as part of their joint-venture. (REUTERS/Rebecca Cook / Reuters Photos)
The proposed Indiana plant would join other centers the companies' joint venture will have in Ohio, Michigan and Tennessee.
Other automakers, including Ford Motor, Hyundai-Kia, Stellantis and VinFast have announced plans for U.S. battery plants.
A new U.S. law offers an incentive to build batteries in North America, including a tax credit of up to $7,500 that could be used to defray the cost of buying an electric vehicle.
The Associated Press contributed to this report.