YORK TOWNSHIP Toyota Motor North America, Inc. announced Thursday it will invest nearly $50 million to construct a new laboratory facility at its North American headquarters to evaluate batteries for electric and electrified vehicles in North America.

As part of its evaluation process, the new Michigan battery lab will ensure that Toyota’s batteries
meet North American customer requirements by confirming performance, quality and durability of
automotive batteries made by Toyota. Operations at the new battery lab are expected to begin in 2025.

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 towards electrification for all,”
said Shinichi Yasui, executive vice president of Toyota Motor North America (TMNA), Research and
Development. “By adding these critical evaluation capabilities around automotive batteries, our team is
positioned to better serve the needs of our customers, including Toyota Battery Manufacturing North
Carolina and Toyota Motor Manufacturing Kentucky, the latter of which will soon be assembling the
recently announced allnew, threerow, battery electric SUV.”

The team will also work with other North American partner suppliers to incorporate locallyproduced
battery parts and materials in support of Toyota’s multipathway approach to reducing carbon emissions
through its portfolio of hybrid, plugin hybrid, fuel cell and battery electric product offerings.

Beyond battery development, other lab activities are expected to include evaluations using Level 2 and
Level 3 charging as well as connectivity to power sources and infrastructure. Further, chassis
dynamometers at both Toyota R&D campuses in York Township and Ann Arbor are being upgraded to
accommodate full battery electric vehicle evaluations.

With increasing production for electrification coming to North America, it’s important to have local
supporting infrastructure, but more importantly it enables us to invest in team members and technology
development,” said Jordan Choby, Group Vice President of Powertrain at TMNA R&D. This new facility
also enables us to experiment and pursue new opportunities as technology and business needs advance.”

In addition to working with current battery production, lab engineers will explore new battery
configurations for future products. Their research may also contribute to Toyota’s development of new
electrified vehicle architectures. Toyota will explore further expansion of the lab’s capabilities and
opportunities for supporting the needs of the battery and BEV ecosystem.

Lincoln Consolidated and Ypsilanti Community Schools, both part of Washtenaw Intermediate School District (Washtenaw ISD), are collaborating with Toyota* and Eastern Michigan University (EMU) to prepare youth for the careers of tomorrow. The southeast Michigan collaboration falls under Toyota’s Driving Possibilities initiative as a five-year phased rollout in Ypsilanti and Lincoln communities.

As part of a $110 million initiative dedicated to Toyota’s Driving Possibilities, the Toyota USA Foundation
is granting nearly $10 million over the next five years in southeast Michigan. The initial funds will be
distributed between two community partners including EMU’s College of Education for a newly created
STEM (Science, Technology, Engineering, Math) Institute and Community Transportation Association of
America (CTAA) for a transportation study.

“Our goal is to increase awareness of future STEM careers while helping build sustainable programs in
the communities where our Toyota team members live and work,” said Tellis Bethel, group vice
president of social innovation, Toyota. “It’s exciting to see the expansion of Driving Possibilities near our
Michigan R&D facilities, the first location announced out of the 14 additional U.S. sites planned.”

Driving Possibilities is designed to be an equitable collaboration with schools, nonprofits and community
to help all student succeed – at school and in the careers of the future. The long-term initiative from
Toyota focuses on PreK-12 education, building on Toyota’s existing programs across the country. The
aim is to close educational gaps for all students through innovative, hands-on STEM programming that
leverages unique assets and resources in the equal-partner relationship. Driving Possibilities is designed
to help increase STEM awareness, excitement and interest in a promising career in a STEM-related field
while addressing the essential needs of students and families.