Toyota Plans Greensboro, North Carolina, Battery Production Plant
The company will establish Toyota Battery Manufacturing North Carolina and build an automotive battery plant together with Toyota Tsusho, aiming to start production in 2025. The project includes an investment of $1.29 billion through 2031, which includes funds that will be used to develop land and build facilities.
The next-generation battery plant will be housed in new facilities, located in the Triad region in northern Randolph County. The site will provide easy access to major interstates, an international airport, and first-rate rail and intermodal facilities.
“The future of mobility is electrification and the Greensboro-Randolph Megasite is the ideal location to make that future a reality,” said Ted Ogawa, CEO of Toyota Motor North America. “North Carolina offers the right conditions for this investment, including the infrastructure, high-quality education system, access to a diverse and skilled workforce, and a welcoming environment for doing business. Today marks the beginning of a mutually beneficial partnership with the Tar Heel state as we embark on our journey to achieve carbon neutrality and provide mobility for all.”
The TBMNC project will be facilitated, in part, by a Transitional Job Development Investment Grant approved by the state’s Economic Investment Committee earlier today, the first JDIG of this classification ever awarded. The North Carolina General Assembly introduced the Transitional project classification to the JDIG program in November of this year, joining the state’s existing special classes of High-Yield and Transformative economic development projects.
Toyota’s project is estimated to grow the state’s economy by at least $9.5 billion over 20 years, the time period when the grant’s first phase could be active. The JDIG agreement authorizes the potential reimbursement to the company of up to $79.1 million over 20 years.
“Toyota’s commitment to establish its North America clean energy efforts in North Carolina shows that preparation pays off enormously,” said Commerce Secretary Machelle Baker Sanders. “The hard work of preparing any site for business development involves not just moving dirt and laying infrastructure but investing in education, workforce development, and the collaborative networks that pull resources together. I’m proud of the people and organizations that have worked closely together over many years to make today’s announcement possible.”
Should Toyota increase the number of jobs and capital investment committed to the project to 3,875 jobs and $3 billion of investment within 36 months of today’s award, the company will trigger phase 2 of the Transitional JDIG and could then receive up to an estimated $315 million over the life of the grant, which could expand to run for as many as 39 years. The state’s economy would grow by a total of nearly $35 billion, due to the increased scale of the project.
The potential phase 2 payment to the company is only an estimate at this point, since the ultimate amount will be calculated based both on when the increased investment and job creation targets are met, as well as the final reported number and type of jobs that are ultimately created for the project.
“Toyota’s announcement is recognition of the central role that North Carolina is poised to play in the global shift toward electric vehicles, and marks an important milestone in the state’s commitment to growing the clean energy economy,” said Christopher Chung, CEO of the Economic Development Partnership of North Carolina (EDPNC). “The North Carolina team has had ongoing conversations with Toyota since they first reviewed the Greensboro-Randolph Megasite several years ago, and this longstanding relationship, coupled with a business-friendly environment and a history of automotive engineering excellence were instrumental in the state’s election for this transformative project that will have lasting community and economic impact on our state.”
Like all grants from the JDIG program, any state payments only occur following performance verification each year by the departments of Commerce and Revenue that the company has met its incremental job creation and investment targets.
The state approved additional support to help with final site preparations at the Greensboro-Randolph Megasite in the recently passed state budget. For the project’s first phase, $135 million has been appropriated to the Department of Commerce, which will be used by the North Carolina Department of Transportation for road, highway interchange, and other site improvements in Randolph County and at the megasite. Should the company exercise its option to trigger phase 2 of the Transitional JDIG, then an additional $185 million in site development funds would become available.
“Toyota’s decision to build a facility at the Greensboro-Randolph Megasite validates the strength of this region’s labor force, infrastructure and our ability to build regional partnerships to get things done,” added Brent Christensen, president & CEO of the Greensboro Chamber of Commerce.
A series of land acquisitions over several years made it possible for the Greensboro-Randolph Megasite Foundation and the Randolph County Economic Development Corporation to ultimately offer a 1,900-acre site. The North Carolina Railroad Company was integral to the site’s success, investing nearly $35 million to purchase more than 60 percent of the land required for the future home of the automotive battery production plant.
2023 Top States for Doing Business Meet the Needs of Site Selectors
The Rise of Mid-Size U.S. Cities: The Industrial Development Boom
Front Line: Brownfields Offer Redevelopment Opportunities
2023 Top States Commentary: Top-Ranked States Have What It Takes to Win Mega Projects
37th Annual Corporate Survey: Economic Pressures Exerting Greatest Effect on Decision-Makers
2023 Top States Workforce Development Programs
Immigration: A Potential Fix for Labor Shortages?
Workforce Q4 2023