Toyota is reportedly planning to construct a new electric vehicle (EV) battery plant in Fukuoka Prefecture, Japan. The plant will be located on Kyushu, Japan’s southernmost main island, nicknamed “Silicon Island.”

Operated by Toyota’s subsidiary Primearth EV Energy, the plant located at Silicon island is known for its concentration of automotive and semiconductor plants. According to Nikkei Asia, the new battery plant will be situated around 25 miles from Toyota’s Miyata plant, which produces Lexus models primarily for export. This proximity is expected to streamline the supply chain, reduce shipping costs, and decrease production time for Toyota’s luxury EV models. The Miyata plant has an annual capacity of 430,000 vehicles, with 90% destined for export markets, mainly in Asia.

Notably, a Toyota spokesperson stated to Bloomberg that the company is “engaged in various efforts to improve our production capacity of electric vehicle batteries,” but did not emphasize on the Nikkei Asia report.

While Toyota has not disclosed the exact investment amount or construction timeline for the new facility, it aligns with the company’s strategy to invest $32 billion in EVs by 2030. The automaker aims to sell 3.5 million EVs annually by that year, a major increase from the 104,000 units sold in 2023.

The potential decision to focus on battery production for Lexus models underlines Toyota’s goal to transform Lexus into an all-electric brand by 2035. As of now, the RZ model is the only Lexus EV sold in the U.S. market, but the company has plans to expand its EV lineup.

Read More: Toyota Opens Lexus Charging Stations To All EVs In Japan

Even though automakers are scaling back their EV production targets due to slower-than-expected demand, Toyota appears to be doubling down on its EV strategy in response to the growing competition from Chinese automakers offering advanced and affordable EVs.

With Toyota aiming to enhance and increase its production capacity of its EVs and its batteries, the company’s investment in domestic production signals its determination to remain a contender in the EV market while also safeguarding its position in the luxury EV segment through its Lexus brand.

If you are looking for models like the 2024 Lexus RZ, we can help you get started. Click Here to find the best deals near you. Want to learn more about EV? Thinking of buying an EV? Head over to EV.com and discover more.

EV.com is the world’s 1st Electric Vehicle (EV) marketplace that aims to promote zero-emission mobility by providing a platform for consumers to learn about, compare, and purchase EVs.