Toyota has chosen a site in Greensboro-Randolph, North Carolina, for its new $1.29 billion U.S. battery manufacturing plant. The news comes on the heels of Toyota’s announcement of a $3.4B investment in U.S. battery production through 2030.

The site, projected to begin operations in 2025, will be named Toyota Battery Manufacturing, North Carolina (TBMNC). Toyota says the plant will have four production lines, each capable of manufacturing enough batteries to power 200,000 vehicles. The company expects to grow to at least six production lines, with a total annual output to power 1.2 million vehicles.

The CEO of Toyota Motor North America, Ted Ogawa, believes North Carolina is a solid fit for the project. “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,” Ogawa said. “Today marks the beginning of a mutually beneficial partnership with the Tar Heel state as we embark on our journey to achieve carbon neutrality and provide mobility for all.”

In the announcement, Toyota says that the company is “committed to using 100-percent renewable energy” at the plant. Further details, including which vehicles’ batteries TMBNC will manufacture, have yet to be disclosed.

Toyota’s move comes as many automakers invest heavily in battery production. Earlier this year, Ford announced a partnership with SK Innovation called BlueOval SK, which will produce 60-gigawatt hours (GWh) by 2030. Volvo Cars’ partnership with Swedish battery company, Northvolt, has a projected capacity of 50 GWh. Meanwhile, Tesla’s European battery factory, Tesla Giga Berlin, aims to produce up to 250 GWh beginning in 2022.