Toyota Invests $2 Billion in Electric Vehicle Plant in Shanghai

Japanese automaker Toyota has announced the signing of a strategic agreement with the Shanghai municipal government to establish a wholly-owned plant for the production of electric vehicles (EVs) and EV batteries in Jinshan District, with an investment of 14.6 billion yuan approximately $2 billion USD

Project Details

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Construction of the facility is set to begin in June 2025, with production scheduled to start in 2027. The factory will focus on the development and manufacturing of Lexus-branded electric vehicles and batteries, with an initial annual production capacity of 100,000 units. It is expected to create around 1,000 jobs during its initial operational phase

Project Objectives

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The initiative aims to enhance Toyota’s research, development, and production capabilities in the EV sector, with an emphasis on developing advanced technologies to support carbon neutrality. The company also intends to collaborate with local suppliers to strengthen the EV supply chain in China

Strategic Context

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This move comes amid escalating trade tensions between the U.S. and China, with mutual tariffs impacting the automotive industry. Through this investment, Toyota seeks to solidify its position in the Chinese market—the world’s largest EV market—and to compete with local powerhouses such as BYD and Geely

This investment represents a strategic step for Toyota in the global EV landscape, allowing the company to capitalize on China’s rapidly expanding electric vehicle sector while focusing on innovation, local collaboration, and sustainability-driven growth