Toyota to build $48M EV battery lab in Michigan

Toyota North America Inc. said it will invest $48 million in a new battery laboratory at its North American R&D headquarters west of Detroit in York Township, Mich.

The laboratory will evaluate Toyota EV battery quality for North American standards and develop new battery configurations for future products, Toyota said Thursday in a statement. The Toyota R&D campuses in York Township and nearby Ann Arbor, Mich., are also being upgraded to facilitate full battery-electric vehicle testing.

The lab is expected to be operational in 2025.

Toyota will receive a $500,000 state grant and a tax abatement valued at nearly $1.1 million over 12 years to build the lab, according to the Michigan Economic Development Corp.

"Over time, we do envision the further expansion of the lab's capabilities as technology emerges and new business opportunities arise," said Jordan Choby, group vice president of powertrain at Toyota Motor North America's R&D arm.

The announcement comes as recent data shows Toyota continues to lag behind Tesla Inc., General Motors, Ford Motor Co. and others in new EV registrations in the U.S.

Ford is notably set to invest $3.5 billion in a battery plant in Marshall, Mich., a venture the automaker hopes will help it compete with Chinese EV makers. Last month, Ford CEO Jim Farley said he sees China, not GM or Toyota, as its main rival in the EV sector.

The new Toyota battery lab will help the automaker keep pace with electrification in North America, Jordan Choby, group vice president of powertrain at Toyota North America's R&D unit, said in the statement. Toyota said it invested more than $8 billion in U.S. manufacturing operations in recent years, primarily to support electrification. Toyota and its Lexus brand offer 22 electrified vehicle options in the U.S.

"By adding these critical evaluation capabilities around automotive batteries, our team is positioned to better serve the needs of our customers, including Toyota Battery Manufacturing North Carolina and Toyota Motor Manufacturing Kentucky, the latter of which will soon be assembling the recently announced all-new, three-row, battery-electric SUV," said Shinichi Yasui, executive vice president of Toyota Motor North America R&D, in the statement.

At the new laboratory, Toyota will incorporate locally produced battery parts and materials sourced from its other North American partner suppliers, the statement added.

Toyota said the lab also will evaluate EV chargers as well as connectivity with infrastructure and power sources.

Crain's Detroit Business contributed to this report.