Toyota Motor Corporation started production at its new $13.9 billion battery plant in North Carolina on Wednesday.
The facility marks the company's 11th factory in the United States.
It will produce batteries for hybrid versions of the Camry, Corolla Cross, RAV4, and an upcoming all-electric three-row vehicle.
The plant currently supplies hybrid batteries to Toyota factories in Kentucky and a joint venture with Mazda in Alabama.
The initiative was first announced in December 2021 to support hybrid and electric vehicle production.
Toyota confirmed plans to invest an additional $10 billion in U.S. manufacturing over the next five years.
This commitment will bring the company's total investment in the country to over $60 billion.
Ted Ogawa, president of Toyota Motor North America, said:
Over the next five years, we are planning an additional investment of $10bn in the US to further grow our manufacturing capabilities, bringing our total investment in this country to over $60bn.
The 1,850-acre site will reach full capacity of 30 gigawatt-hours annually.
It will feature 14 production lines for plug-in hybrids and full electric vehicles.
The plant is expected to employ 5,000 workers eventually.
U.S. President Donald Trump last month highlighted Toyota's planned $10 billion investment.
“Go out and buy a Toyota,” said Trump, who has imposed tariffs on imported vehicles.
Toyota has prioritized hybrids over full electric vehicles amid shifting policies.
“We know there is no single path to progress”, Ogawa said on Wednesday.
The company maintains a multi-pathway approach including gas engines, hybrids, plug-in hybrids, battery electrics, and fuel cell electrics.
Other automakers like Volkswagen are adding hybrids following the rescission of EV tax credits.
Transportation Secretary Sean Duffy announced plans to ease fuel economy standards.
Duffy previously ordered the rescission of stricter standards set for 2022-2031 model years under the prior administration.
Toyota's stock rose about 0.4 percent in midday New York trading.