Toyota to invest $1.29B to build North Carolina battery plantDecember 17, 2021
Toyota plans to invest $1.29 billion in North Carolina to build its first North American battery manufacturing plant at the Greensboro-Randolph Megasite, Gov. Roy Cooper’s office announced.
The investment is expected to create at least 1,750 jobs in Randolph County. The facility will produce batteries for Toyota’s hybrid electric vehicles to start and will produce batteries for battery electric vehicles down the road.
“The future of mobility is electrification and the Greensboro-Randolph Megasite is the ideal location to make that future a reality,” Toyota Motor North America CEO Ted Ogawa said in a statement. “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 North Carolina project will be led by a new venture between Toyota and Toyota Tsusho Corporation, the trading arm of the Toyota Group, known as Toyota Battery Manufacturing, North Carolina.
Toyota will receive the first-ever Transitional Job Development Investment Grant (JDIG) to be awarded by the North Carolina Economic Investment Committee. The North Carolina Legislature approved the Transitional project classification to the JDIG program in November.
Based on a formula that considers the new tax revenues generated by the 1,750 jobs required as part of the project, the JDIG agreement authorizes reimbursement to Toyota up to $79.1 million over 20 years.
A second phase of the JDIG grant would be triggered if Toyota commits to increasing the number of jobs and capital investment to 3,875 jobs and $3 billion of investment within 36 months of this week’s JDIG award.
Toyota could receive up to an estimated $315 million over the life of the grant, which could expand to run for as many as 39 years, if Phase 2 is triggered.
“It’s tremendous that Toyota has selected North Carolina for such an important part of its electric vehicle future, creating good paying jobs and moving us toward a healthier environment,” Cooper said in a statement. “It’s clear the world is beginning to embrace a clean energy future and today’s decision puts North Carolina front and center.”
The project is estimated to grow the state’s economy by more than $35 billion, North Carolina Department of Commerce economists estimated.
“I welcome Toyota to North Carolina,” Senate Leader Phil Berger, R-Rockingham, said in a statement. “We’ve worked hard to transform North Carolina into a jobs-friendly state with low taxes, reasonable regulations, and a world-class education system. As a result, companies big and small are creating jobs here, continuing a decade of growth.”
Kroger: The grocery retailer will build a customer fulfillment center in Concord that is expected to create nearly 700 jobs over five years in Cabarrus County.
Kroger will receive a JDIG over a 12-year term. Based on job creation and investment targets, the JDIG agreement authorizes reimbursement to Kroger up to $2.3 million.
MasterBrand Cabinets: The cabinet manufacturer will invest more than $13.5 million to expand its manufacturing center in Kinston. The investment is expected to more than 450 jobs over five years in Lenoir County.
MasterBrand Cabinets will receive a JDIG over a 12-year term. Based on job creation and investment targets, the JDIG agreement authorizes reimbursement to MasterBrand up to $3.9 million.
Sherrill Furniture: The furniture manufacturer will invest $2.9 million to open a new facility in Conover. The investment is expected to create 90 jobs in Catawba County. Sherrill will receive a performance-based One North Carolina Fund grant of $150,000 to aid the expansion. All One NC Fund grants require a matching grant from local governments.
Precision Graphics: The contract electronics manufacturing solutions provider will invest $5.1 million to open a production facility in Snow Hill. The investment is expected to create 70 jobs in Greene County. Precision will receive a performance-based One NC Fund grant of $150,000 to aid the expansion.
Meel Corp: The frozen food company will invest $5.7 million to relocate a production facility to Oxford. The investment is expected to create 24 jobs in Granville County. Meel Corp will receive a performance-based One NC Fund grant of $50,000 to aid the relocation.
Hosokawa Custom Processing Services: The contract chemical processor will invest $6.5 million to relocate a processing center to Goldsboro. The investment is expected to create 16 jobs in Wayne County. Hosokawa will receive a performance-based One NC Fund grant of $50,000 to aid the relocation.
This article was originally posted on Toyota to invest $1.29B to build North Carolina battery plant