Toyota Delays Japanese Battery Plant After Slashing EV Sales Targets

Toyota is hitting the brakes—slightly—on one of its major EV infrastructure projects in Japan. While the company still plans to move forward with a new battery plant, construction won’t begin as soon as originally expected. The pause comes as Toyota adjusts its EV strategy.

The plant is slated for Japan’s Fukuoka prefecture, and according to local Governor Seitaro Hattori, an agreement on the exact location was supposed to be finalized in April. That timeline has now slipped to sometime in the fall. The facility had been scheduled to start operations in 2028, but the delay could push that date back as well.

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Toyota is still committed to building the facility, Nikkei Asia reports, but the company is now reevaluating what will actually be produced there. Initially, the plant was intended to manufacture batteries for Toyota’s next generation of electric vehicles, some of which are targeting a range of up to 620 miles (1,000 kilometers).

The shift reflects a broader recalibration of Toyota’s EV ambitions. While global electric car sales are still climbing, they’re not accelerating as fast as some carmakers once projected. That mismatch between forecasts and reality is now prompting the company to rethink its targets.

Back in 2022, Toyota announced it aimed to sell 1.5 million EVs annually by 2026. That number was cut to 1 million in 2023, and most recently trimmed again to just 800,000 units. The company hasn’t abandoned EVs by any stretch, it’s simply adjusting expectations in a market that’s proving to be more complex and less predictable than initially suggested.

Earlier this month, Toyota established a new Chinese subsidiary for Lexus that will develop and build EVs and batteries at a plant in China. The plant will be located in Shanghai and will manufacture several models exclusively for the Chinese market.