Toyota is planning to build a new EV battery plant on Japan’s “Silicon Island” to keep pace with BYD and other incoming Chinese electric car makers. The factory will strengthen EV supply chain while supplying batteries for its luxury Lexus brand. Although Toyota has been one of (if not the) biggest laggards in the global shift to electric cars, the Japanese automaker realizes it needs to compete with Chinese EV makers like BYD.
After launching its first EV, the Atto 3, in Japan, BYD now has three EVs rolling out on Toyota’s home turf. BYD Seal EV last month, starting at ¥5.28 million, or around $33,100.
According to the (JAIA), Chinese EV imports accounted for nearly 10% of all cars shipped into Japan in the first half of 2024. And Japan is not an easy market to break into. Toyota and other domestic automakers dominate Japan’s auto sales, while most imports are European luxury like BMW, Mercedes, and Porsche.
BYD was the prime reason behind the growth, with passenger car imports surging 184% compared to last year. Toyota looks to counter BYD’s surge with a new EV battery plant in Kyushu, the southernmost island of Japan’s main four. According to , Toyota’s battery manufacturing business, Primeearth EV Energy, will operate the new plant.
The island is home to several auto and semiconductor plants, earning it the nickname “Silicon Island.” Taiwan Semiconductor Manufacturing Co. (TSMC), the largest global contract chipmaker, just opened on the island.
Toyota.
