Toyota Calls Biden's EPA Plan To Boost EV Sales "Unrealistic"

Toyota Motor North America, Inc., in a letter sent to the head the Environmental Protection Agency, has criticized its proposed new tailpipe emissions standards, calling them "unrealistic", and warning they could lead to a shortage of vital minerals.

Toyota wrote to EPA Administrator Michael Regan, expressing its concerns about the agency's proposed tailpipe emission standards for vehicles manufactured in 2027 or beyond. The proposed rule would increase the number of electric vehicles sold. By 2032, 67% of light-duty vehicle and 46% medium-duty vehicle new sales will be electric. Currently, EVs or plug-in hybrids make up about 10% of the total market.

Toyota stated that the rapid growth of EV production in order to meet the new government standards will create many challenges, such as the scarcity and high costs of batteries.

The automaker said it shared the Biden administration’s goal of decarbonizing transportation, and was committed to vehicle electricification in America. "Our environmental record speaks for itself." "We have sold more than 20 million electrified cars globally since 1997, when the Prius was introduced," the company said.

Toyota announced that it will manufacture a new electric SUV in Kentucky at Toyota Motor Manufacturing Kentucky by 2025. Batteries for the vehicle will be sourced from Toyota Battery Manufacturing North Carolina. It also said it was "committed to" achieving carbon neutrality by 2050 for the entire lifecycle of our vehicles.

Toyota expresses further concerns regarding the proposed tailpipe emissions rule by the EPA:

By 32MY, the proposed standards will result in a new mix of vehicles that is 67% BEV. The factors that determine the level of penetration are almost all outside our control. In our comments attached, we discuss in greater detail the need for hundreds of new mines to be built around the world to supply enough minerals to power so many BEVs. Most of these minerals come from outside the US. The majority of mineral processing is also done in other countries to convert the ore into battery-grade materials. The charging infrastructure, both public and in-home, that is needed to support this level of electrification remains far behind where it should be. The recent legislation and incentives appear to be in the right direction but fall far short of what's needed. EPA must adjust the proposed standards to take into account these major uncertainties, over which automakers do not have control but which could have significant compliance and brand/reputation ramifications if they are not addressed. Compliance cannot be based upon factors that we do not control.