By David Shepardson

WASHINGTON (Reuters). Toyota Motor (NYSE:) Corp.’s North American division announced Monday that it would invest approximately $3.4 billion (380 Billion yen) in U.S. battery production and development through 2030.

This is also the largest volume automaker worldwide. The company plans to form a new business and construct a new U.S. auto battery plant along with Toyota Tsusho (the automaker’s metals trading arm, a part of the Toyota Group).

New plant will be built in the United States and include an investment of $1.29B by Toyota through 2031.

These funds make up $13.5 billion that the company announced it would spend worldwide by 2030 on batteries and their supply system. In September, the largest Japanese automaker stated that it wanted to reduce the cost of its batteries by at least 30% by improving the materials and structure of the cells.

Toyota indicated that the new company would initially concentrate on making hybrid batteries. Toyota indicated that the company will eventually disclose its production capacity and business structure, as well as the location of the plants.

Ted Ogawa from Toyota North America, the CEO said that this investment will “help usherin more affordable electrified automobiles for U.S. Customers

Global automakers are making billions of dollars in order to boost battery production and electric vehicle production, as stricter environmental regulations force them to.

Toyota is launching a lobbying campaign in an effort to persuade U.S. legislators not to add a $4,500 tax incentive to union-made electric cars.

Joe Biden, the U.S. president signed in August an executive order aiming to reduce emissions by half for all new vehicles.

Detroit’s Big Three Automakers stated in August that they aim to achieve annual U.S. sales volumes of 40-50% for electric cars by 2030.

Toyota last month stated that it was “unreservedly committed to meeting the challenge of producing half of all electric cars sold by 2030.”

Biden’s 50% goal and the automakers’ 2030 goals includes battery electric, fuel cell and plug-in hybrid vehicles that also have a gasoline-engine.