Japanese media Electric vehicle investment is flowing into North America, with 10 car companies totaling over 20 trillion yen

10 Japanese car companies invest over 20 trillion yen in electric vehicles in North America

【PhoneAuto News】Recently, PhoneAuto noticed that the Nikkei News reported that investments in electric vehicles are advancing towards North America. From 2022 to 2028, the global top 10 auto companies plan to invest a total of 20 trillion Japanese yen (approximately 1 trillion yuan or 140 billion U.S. dollars) in North America, with 70% of the investment going towards batteries. With the implementation of the Inflation Reduction Act (IRA), which offers tax incentives for producing pure electric vehicles in North America, it is expected that investments will increase further. The risk of decarbonization technology and industrial base flowing to the United States is increasing.

It is worth mentioning that currently, about 50% of investments in electric vehicles in North America come from American domestic automobile companies, such as Ford and General Motors, with some coming from European and Korean automobile companies. At the same time, about 20% to 30% of investments are led by Japanese companies, including Honda and Toyota.

Currently, Honda has already invested 100 billion yen in EVs in North America and 610 billion yen in battery joint ventures. Among them, Honda’s investment is obviously more biased towards the battery field. Toyota has announced that it will build a vehicle battery factory in North Carolina, USA, and strive to put it into operation by 2025. On June 1st, Toyota also announced an additional investment of 2.1 billion U.S. dollars. Including previously announced investments, the total investment in the battery plant amounts to 5.9 billion U.S. dollars. After 2025, Toyota will also start production of pure electric vehicles at its factory in Kentucky, USA. Toyota revealed that it will invest 5 trillion yen in pure electric vehicle related fields by 2030. Senior analyst Sugihara Seiji of Donghai Tokyo Investigation Center believes that “more than half of them may be invested in the United States.”

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