Toyota is aiming to start producing electric vehicle (EV) batteries next year at its upcoming factory in North Carolina, set to eventually build battery packs for the company’s hybrids, plugin hybrids and EVs.
After increasing its investment into the plant to $13.9 billion total last year, Toyota has continued to make progress on construction at the site since it broke ground in the latter part of 2022.
Toyota chairman predicts EVs will only reach 30 percent market share
In an exclusive tour of the facility with Automotive News last week, Sean Suggs, Toyota Battery Manufacturing President at the North Carolina complex, noted that the factory is scheduled to begin production of EV batteries it can sell in the first quarter of next year. The initial batteries will be for a three-row EV slated to be produced at Toyota’s plant in Georgetown, Kentucky.
“Things are progressing really, really nicely,” Suggs said. “We’re in the heat of trial activity as we speak, doing trial activity in our first building. We’ve got about 300 team members that are on-site each day; the rest of them [around 500] are in our headquarters location in Greensboro.”
Suggs also says roughly 1,000 people are awaiting start dates, ahead of the Japanese automaker’s plans to employ 5,100 people total upon planned completion in 2028. The North Carolina plant is also expected to produce 30 GWh of EV batteries per year, across seven buildings featuring two production lines each.
The factory will include 10 production lines total for future battery-electric vehicles (BEVs) and plugin hybrid battery packs, and four lines dedicated to building battery packs for hybrid vehicles. The battery “cans” and other components will be built at an on-site supplier building dubbed Fuji Springs, while the site will also feature a full-time fire department, three drive-through bays, and several other support structures.
The update comes as Toyota has been criticized by many in EV circles for not committing to full electrification quickly enough. As just one example of the sentiment, Ted Ogawa, Toyota Motor North America CEO, said in March that a full push to EVs could be a “wasted investment.”
The company has also defended itself against being anti-EV, with one executive in the company’s Australian arm earlier this year clarifying why the company still wants to invest in hybrids:
“Toyota’s not anti-EV. We’re actually not. And we want to play in that market. We want to be part of it. We’re excited by it,” said Sean Hanley, Toyota Australia VP of Sales and Marketing, in a statement in February.
“We just don’t see it as the golden bullet or the single golden bullet towards carbon neutrality. The multi-pathway is still our strategy, but we’re excited to be coming into the BEV market. We know it plays a role.”
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.
News
Tesla rolls out most aggressive Model Y lease deal in the US yet
With the promotion in place, customers would be able to take home a Model Y at a very low cost.
Tesla has rolled out what could very well be its most aggressive promotion for Model Y leases in the United States yet. With the promotion in place, customers would be able to take home a Model Y at a very low cost.
Zero downpayment leases
The new Model Y lease promotion was initially reported on X, with industry watcher Sawyer Merritt stating that while the vehicles’ monthly payments are still similar to before, the cars can now be ordered with a $0 downpayment.
Tesla community members noted that this promotion would cut the full payment cost of Model Y leases by several thousand dollars, though prices were still a bit better when the $7,500 federal tax credit was still in effect. Despite this, a $0 downpayment would likely be appreciated by customers, as it lowers the entry point to the Tesla ecosystem by a notable margin.
Premium freebies included
Apart from a $0 downpayment, customers of Model Y leases are also provided one free upgrade for their vehicles. These upgrades could be premium paint, such as Pearl White Multi-Coat, Deep Blue Metallic, Diamond Black, Quicksilver or Ultra Red, or 20″ Helix 2.0 Wheels. Customers could also opt for a White Interior or a Tow Hitch free of charge.
A look at Tesla’s Model Y order page shows that the promotion is available for all the Model Y Premium Rear-Wheel Drive and the Model Y Premium All-Wheel Drive. The Model Y Standard and the Model Y Performance are not eligible for the $0 downpayment or free premium upgrade promotion as of writing.
@teslarati 🚨 Tesla Full Self-Driving v14.1.7 is here and here’s some things it did extremely well! #tesla #teslafsd #fullselfdriving ♬ You Have It – Marscott
News
Tesla is looking to phase out China-made parts at US factories: report
Tesla has reportedly swapped out several China-made components already, aiming to complete the transition within the next two years.
Tesla has reportedly started directing its suppliers to eliminate China-made components from vehicles built in the United States. This would make Tesla’s US-produced vehicles even more American-made.
The update was initially reported by The Wall Street Journal.
Accelerating North American sourcing
As per the WSJ report, the shift reportedly came amidst escalating tariff uncertainties between Washington and Beijing. Citing people reportedly familiar with the matter, the publication claimed that Tesla has already swapped out several China-made components, aiming to complete the transition within the next two years. The publication also claimed that Tesla has been reducing its reliance on China-based suppliers since the pandemic disrupted supply chains.
The company has quietly increased North American sourcing over the past two years as tariff concerns have intensified. If accurate, Tesla would likely end up with vehicles that are even more locally sourced than they are today. It would remain to be seen, however, if a change in suppliers for its US-made vehicles would result in price adjustments for cars like the Model 3 and Model Y.
Industry-wide reassessments
Tesla is not alone in reevaluating its dependence on China. Auto executives across the automotive industry have been in rapid-response mode amid shifting trade policies, chip supply anxiety, and concerns over rare-earth materials. Fluctuating tariffs between the United States and China during President Donald Trump’s current term have made pricing strategies quite unpredictable as well, as noted in a Reuters report.
General Motors this week issued a similar directive to thousands of suppliers, instructing them to remove China-origin components from their supply chains. The same is true for Stellantis, which also announced earlier this year that it was implementing several strategies to avoid tariffs that were placed by the Trump administration.
@teslarati 🚨 Tesla Full Self-Driving v14.1.7 is here and here’s some things it did extremely well! #tesla #teslafsd #fullselfdriving ♬ You Have It – Marscott
News
Tesla owners propose interesting theory about Apple CarPlay and EV tax credit
“100%. It’s needed for sales because for many prospective buyers, CarPlay is a nonnegotiable must-have. If they knew how good the Tesla UI is, they wouldn’t think they need CarPlay,” one owner said.
Tesla is reportedly bracing for the integration of Apple’s well-known iOS automotive platform, CarPlay, into its vehicles after the company had avoided it for years.
However, now that it’s here, owners are more than clear that they do not want it, and they have their theories about why it’s on its way. Some believe it might have to do with the EV tax credit, or rather, the loss of it.
Owners are more interested in why Tesla is doing this now, especially considering that so many have been outspoken about the fact that they would not use it in favor of the company’s user interface (UI), which is extremely well done.
After Bloomberg reported that Tesla was working on Apple CarPlay integration, the reactions immediately started pouring in. From my perspective, having used both Apple CarPlay in two previous vehicles and going to Tesla’s in-house UI in my Model Y, both platforms definitely have their advantages.
However, Tesla’s UI just works with its vehicles, as it is intuitive and well-engineered for its cars specifically. Apple CarPlay was always good, but it was buggy at times, which could be attributed to the vehicle and not the software, and not as user-friendly, but that is subjective.
Nevertheless, upon the release of Bloomberg’s report, people immediately challenged the need for it:
Everyone thinks they need it. I would think that too if I didn’t know how good Tesla’s interface was. CarPlay is a crappy layer on top of crappy info-navs, and people think it’s an imperative because it provides a level of consistency from car to car. They have no clue how much…
— Rich Stafford (@r26174_rich) November 14, 2025
How can it not be when the best engineers choose Tesla over Apple and Tesla’s core focus is auto vs Apple being mobile. It’s what Tesla does every day. It’s a side project for Apple. Still Apple is much better than any other auto OEM who attract lesser talent and make digital…
— Emu (@confessedemu) November 14, 2025
Some fans proposed an interesting point: What if Tesla is using CarPlay as a counter to losing the $7,500 EV tax credit? Perhaps it is an interesting way to attract customers who have not owned a Tesla before but are more interested in having a vehicle equipped with CarPlay?
“100%. It’s needed for sales because for many prospective buyers, CarPlay is a nonnegotiable must-have. If they knew how good the Tesla UI is, they wouldn’t think they need CarPlay,” one owner said.
Tesla has made a handful of moves to attract people to its cars after losing the tax credit. This could be a small but potentially mighty strategy that will pull some carbuyers to Tesla, especially now that the Apple CarPlay box is checked.
@teslarati :rotating_light: This is why you need to use off-peak rates at Tesla Superchargers! #tesla #evcharging #fyp ♬ Blue Moon – Muspace Lofi
-
News1 week agoTesla shares rare peek at Semi factory’s interior
-
Elon Musk1 week agoTesla says texting and driving capability is coming ‘in a month or two’
-
News1 week agoTesla makes online ordering even easier
-
News1 week agoTesla Model Y Performance set for new market entrance in Q1
-
News1 week agoTesla Cybercab production starts Q2 2026, Elon Musk confirms
-
News6 days agoTesla is launching a crazy new Rental program with cheap daily rates
-
News1 week agoTesla China expecting full FSD approval in Q1 2026: Elon Musk
-
News1 week agoTesla Model Y Performance is rapidly moving toward customer deliveries