Toyota said Wednesday it will invest JPY 730 billion ($5.25 billion) to increase its battery manufacturing capacity by 40 gigawatt-hours, Kallanish reports.

The Japanese car giant, often described as a laggard in the electrification race, plans to invest JPY 400 billion in Japan and JPY 325 billion in the US. Production is to come online between 2024 and 2026.

The investment will be pumped into its Himeji Plant of Prime Planet Energy & Solutions (PPES) and other Japanese plants. In the US, capital will be injected in the Toyota Battery Manufacturing, North Carolina (TBMCN) – the JV 90% owned by Toyota Motor North America and 10% by Toyota Tsusho Corporation.

In March, Toyota said the US battery plant in Liberty, North Carolina, will run four production lines and produce enough batteries to power 200,000 vehicles per year. Production was planned to come online in 2025, and potentially be expanded to “at least” six lines to meet demand from 1.2 million vehicles/year.

“Toyota intends to continue its efforts to build a supply system that can steadily meet the growing demand for BEVs in various regions, including the supply of battery automotive batteries from its partners,” the carmaker says, without disclosing details on its existing battery capacity.

The investment will enable the company to “flexibly” meet the needs of its various customers by offering multiple powertrains and providing them with “as many options as possible.”