A Toyota logo is seen at the New York International Auto Show Press Preview, in Manhattan, New York City, U.S., March 27, 2024. REUTERS/David Dee Delgado

By David Shepardson

(Reuters) -Toyota Motor said on Wednesday it had begun production at its $13.9 billion North Carolina battery plant as it ramps up hybrid production and confirmed plans to invest $10 billion over five years in U.S. manufacturing.

The Japanese automaker first announced the plan in December 2021 to produce batteries for its hybrid and electric vehicles. Batteries from the plant are set to power hybrid versions of the Camry, Corolla Cross, RAV4 and a yet-to-be-announced all-electric three-row battery electric vehicle. The plant is producing hybrid batteries for factories in Kentucky and a Mazda Toyota joint venture in Alabama.

"Over the next five years, we are planning an additional investment of $10 billion in the U.S. to further grow our manufacturing capabilities, bringing our total investment in this country to over $60 billion," said Toyota Motor North America President Ted Ogawa.

Toyota's 11th U.S. factory, on a 1,850-acre (749-hectare) site, will be able to produce 30 GWh annually at full capacity and house 14 battery production lines for plug-in hybrids and full EVs. It will eventually employ 5,000 workers.

Last month in Japan, U.S. President Donald Trump said Toyota planned a $10 billion investment in the United States. "Go out and buy a Toyota," Trump said. He has been critical of Japanese and other auto imports and imposed hefty tariffs on imported vehicles.

Toyota has been one of the slowest automakers to move to full EVs but has rapidly moved to convert its best-selling vehicles to hybrids.

"We know there is no single path to progress," Ogawa said on Wednesday. "That's why we remain committed to our multi-pathway approach, offering fuel-efficient gas engines, hybrids, plug-in hybrids, battery electronics and fuel cell electronics."

Other automakers like Volkswagen have said they will add more hybrids as the Trump administration has rescinded EV tax credits and eliminated penalties that incentivized EV sales.

Transportation Secretary Sean Duffy said at the event the administration plans to soon propose to ease fuel economy standards, saying prior rules were too aggressive.

Duffy in January signed an order to direct the National Highway Traffic Safety Administration to rescind fuel economy standards issued under President Joe Biden for the 2022-2031 model years that had aimed to drastically reduce fuel use for cars and trucks.

(Reporting by David Shepardson; Editing by Richard Chang)