Toyota North America has confirmed it is to build its first US battery factory in North Carolina. The new $1.29 billion lithium-ion battery manufacturing plant will be at what the Japanese car maker is calling the Greensboro-Randolph Megasite, some 60 miles from North Carolina’s state capital, Raleigh.

When it comes online in 2025 the plant will have four production lines, each capable of delivering enough lithium-ion batteries for 200,000 vehicles—with the intention to expand to at least six production lines for a combined total of up to 1.2 million vehicles per year.

The $1.29-billion investment is partially funded from a total investment of approximately $3.4 billion previously announced and is expected to create 1,750 new jobs.

A contributing factor to selecting the North Carolina location was access to renewable energy with Toyota stating its intention to produce the batteries using 100% renewable energy.

“The future of mobility is electrification and the Greensboro-Randolph Megasite is the ideal location to make that future a reality,” says Ted Ogawa, CEO of Toyota Motor North America.

“North Carolina offers the right conditions for this investment, including the infrastructure, high-quality education system, access to a diverse and skilled workforce, and a welcoming environment for doing business. Today marks the beginning of a mutually beneficial partnership as we embark on our journey to achieve carbon neutrality and provide mobility for all.”

Toyota recently announced its intention to focus in the medium term on plug-in hybrids, rather than pure electric cars, while planning to be completely carbon-neutral by 2050.