Japanese legacy automaker Subaru reportedly sees the state of Indiana as the top candidate for its new electric vehicle production site in the US, Reuters reports.
The company is apparently taking into account some key factors, including the onboard battery procurement and state incentives.
“The time is approaching for us to finally make a decision.”
Subaru President Atsushi Osaki
Electrification targets
Subaru plans to officially start electric vehicle production by 2027 in the world’s largest economy, where EV adoption also progresses.
The automaker aims to have all-electric vehicle models to contribute half of its global sales to 600,000 units by 2030.
Of that total, 400,000 EVs will be for US customers. Subaru also aims to expand its EV portfolio to 8 models by the end of 2028.
President Osaki acknowledges that EV adoption in the country varies in each state. However, it remains optimistic about the US dominance, saying that “there is no doubt that the trend is moving in the direction of EVs.”
However, he also admitted that the local EV industry’s future growth will be hard to foresee. Therefore, Subaru plans to establish a robust and flexible manufacturing system.
Potential challenges
Bloomberg indicated that battery procurement remains a top concern for Subaru’s planned domestic production in the US.
Japanese automaker Toyota and tech giant Panasonic are reportedly among the top candidates to supply batteries for Subaru’s EV production plant. It would be unsurprising, given that both companies own shares in Subaru.
However, the company has yet to decide if it will pursue Indiana “after we decide whether we will procure the batteries through Toyota or our own route,” Osaki clarified.
Nonetheless, President Osaki has recently met Indiana Governor Eric Holcomb in Japan. However, he did not disclose any information regarding the EV production plans in the state.
See Also:
- Demand for Subaru’s maiden EV remains strong despite the launch dela
- Subaru to use Panasonic’s next-gen cylindrical batteries
- Subaru to launch four new electric models by 2026
- Another delay for Subaru Australia’s first electric vehicle
- Subaru plans to become all-electric by 2025
Subaru has yet to clarify whether it will develop a new EV factory or it will just retool current production lines in the US. Notably, Subaru plans to allocate approximately ¥1.5 trillion ($10.2 billion) by 2030 for its electrification strategy.
All that said, establishing domestic EV production in the US would be crucial for the automaker to access the IRA’s federal tax credits and other local incentives.
