Toyota to build $48M EV battery lab in Michigan - Henan Wild Horse Group Co.,Ltd

David Eggert is a senior reporter covering politics and policy for Crain's Detroit Business. He joined Crain's in 2022 after a combined 15 years at The Associated Press in Lansing and jobs at MLive, the Lansing State Journal and various other newspapers.

YORK TOWNSHIP — Toyota Motor North America Inc. will expand its research-and-development headquarters near Ann Arbor by building a nearly $48 million electric vehicle battery lab, the company announced Thursday.

Operations at the new facility are expected to begin in 2025. It will be used to evaluate and test Toyota's batteries for electric and hybrid vehicles in North America, from cells through packs, to ensure their performance, quality and durability. The Japanese automaker does not expect to add to its worker count at the site and will deploy existing employees to the lab, which will cost $47.7 million to construct.

"This new investment in our North American R&D operation, which has been a key pillar of the Michigan automotive industry for more than 50 years, shows Toyota's directional shift toward electrification for all," Shinichi Yasui, Toyota Motor North America's executive vice president of R&D, said in a statement released to coincide with a news conference held at the headquarters in Washtenaw County's York Township.

The move, executives said, will better position Toyota to serve factories, including its existing assembly plant in Kentucky and a battery plant expected to open in North Carolina in 2025. The Kentucky factory in 2025 is planned to begin producing a new three-row battery electric SUV that is expected to be Toyota's first all-electric vehicle assembled in the U.S.

The lab also will be able to serve suppliers that make batteries for Toyota vehicles. Beyond battery development, workers will evaluate charging stations, connectivity to power sources and infrastructure, and explore new battery configurations for future products. Toyota, which has another R&D center in nearby Ann Arbor, employs more than 2,000 people at the two campuses.

Toyota will receive a $500,000 state grant and a tax abatement valued at nearly $1.1 million over 12 years to build the lab, according to the Michigan Economic Development Corp.

"Over time, we do envision the further expansion of the lab's capabilities as technology emerges and new business opportunities arise," said Jordan Choby, group vice president of powertrain at Toyota Motor North America's R&D arm.

Gov. Gretchen Whitmer, who attended the announcement with U.S. Rep. Debbie Dingell, said the investment "demonstrates Michigan's leadership in pioneering the future of mobility."

Also Thursday, Toyota announced a five-year, nearly $10 million initiative to help prepare preK-12 students in the 3,500-student Lincoln Consolidated Schools and the 3,700-student Ypsilanti Community Schools for careers in science, technology, engineering and math.

Toyota Motor North America, Toyota Financial Services and the Toyota USA Foundation will donate most of the money to Eastern Michigan University's College of Education for a newly created STEM institute and the rest to the Community Transportation Association of America for a transportation study.

EMU's hub will provide STEM-related curriculum, activities and services within both districts, including field trips, speakers and camps. The study will analyze transportation barriers to and from schools.

Ryan Evely Gildersleeve, dean of EMU's College of Education, said the community-driven institute will amplify the region's STEM education assets.

"Whether we're talking about growing the talent from the families that are currently here or attracting talent from out of state, if we don't invest in our educational infrastructure and if we don't think creatively and innovatively about we can partner across industry, K-through-12 schools and higher education, all of the wonderfully imagined, innovative, exciting future and the awesome opportunities that our government has been securing for our state won't matter in 10 or 20 years," he said.

Chris Reynolds, executive vice president and chief administrative officer of corporate resources for Toyota Motor North America, said the top two factors in recruitment and retention are quality of life and the quality of the education system.

"If we can't deliver on that, we can't convince people to move," he said. "So in our view, very selfishly, this is an investment in making this area attractive because first off, there is great quality of life ... and second, we're going to make sure that the quality of education continues and increases."