Toyota Stock Price Rose as It Began the Electric Car Transition With a New Battery Lab

Toyota Stock

Toyota Stock (NYSE:TM)

On Thursday, Toyota Motor Corporation (NYSE:TM) announced that it plans to spend almost $50 million on constructing a new laboratory building located at its North American Research and Development headquarters in York Township, Michigan. Batteries for electric and electrified cars in North America will be tested at this facility so that improvements may be made. As a result, Toyota’s stock surged today.

The new battery lab in Michigan will guarantee that Toyota (TM) batteries fulfill the criteria of North American customers by validating the performance, quality, and durability of Toyota-made car batteries. This will ensure that Toyota batteries can meet the needs of North American consumers. It is anticipated that the new battery lab will begin conducting operations in the year 2025.

Executives from Toyota stock have said that the recent investment in a battery lab demonstrates the company’s directional change toward electrification for all vehicles. This investment will also help support Toyota Motor Manufacturing Kentucky and Toyota Battery Manufacturing North Carolina. Toyota Motor Manufacturing Kentucky is the location that will shortly begin assembly of the all-new, three-row, battery-electric SUV that was recently unveiled.

In addition to the creation of batteries, additional operations scheduled to take place in the laboratory include tests of Level 2 and Level 3 charging and the connection to power sources and infrastructure. Additionally, the chassis dynamometers at the Toyota R&D facilities in York Township and Ann Arbor are undergoing an overhaul to enable complete battery electric car tests.

According to Toyota North America executive Jordan Choby, “With increasing production for electrification coming to North America, it is important to have the local supporting infrastructure. However, more importantly, it enables us to invest in team members and technology development.”

In addition to working with the manufacture of batteries now in use, engineers in the lab will investigate innovative battery designs for use in future goods. Their study may also help Toyota build new architectures for its electric car lineup thanks to their contributions. Toyota will investigate the possibility of significantly expanding the lab’s capabilities to better meet the requirements of the battery and electric vehicle ecosystem.

This new information might put Toyota in a position to compete more directly with Tesla on several fronts.

Featured Image: Unsplash @ Christina Telep

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