The Road Ahead: Toyota’s Vision for Electric Vehicles and a Cleaner Tomorrow
Electric vehicles (EVs) are quickly becoming a key focus for nearly all major automakers, with many transitioning away from traditional gas-powered cars. EVs are widely seen as the future of transportation, offering benefits like lower energy costs, reduced emissions, and convenient home charging. Among the companies making headway in this new economic realm is Toyota, one of the world’s most recognizable automobile companies.
The Association of Foreign Press Correspondents (AFPC-USA) recently met with Tom Stricker, the group vice president of Sustainability and Regulatory Affairs for Toyota Motor North America (TMNA), to learn more about Toyota's strategy for achieving carbon neutrality, including its innovative initiatives like the establishment of a Hydrogen Headquarters to advance fuel cell technology. Foreign journalists can thus enhance their reporting about how this major corporations are using their resources to innovate and address the climate crisis.
Tom Stricker is group vice president of Sustainability and Regulatory Affairs for Toyota Motor North America (TMNA). He is responsible for Toyota’s U.S-based environmental sustainability strategy and projects, motor vehicle safety and environmental regulations, operations environmental regulations, and enterprise chemical management.
Prior to joining Toyota in 2001, Stricker served as group manager, Office of Transportation and Air Quality, at the US Environmental Protection Agency (EPA), and as senior products associate at the American Petroleum Institute. In October 2015, he was named the first Chairman of the Board of Auto-ISAC, Inc., a nonprofit established by the automotive industry to promote anonymous sharing of cyber-related threats and vulnerabilities within the vehicle ecosystem. Stricker then served as vice chair from 2017-2019. In addition, Stricker currently serves on the Executive Committee of the Alliance for Automotive Innovation.
This podcast interview was conducted by Alan Herrera, who is AFPC-USA’s Editorial Supervisor and Podcast Manager. AFPC-USA is solely responsible for the content of this episode. Below, foreign correspondents will find a summary of some of the most important takeaways from the presentation.
ON HIS POSITION AT TOYOTA, THE COMPANY’S PORTFOLIO, AND PRODUCT LINEUP
Stricker oversees the company’s efforts to engage with state and federal regulatory agencies on environmental and safety issues, focusing on areas like electrification and vehicle safety. He also manages Toyota’s broader sustainability strategy in North America, ensuring alignment with the company’s global goals. Stricker describes his role as being at the forefront of the industry’s shift towards sustainability, emphasizing the dynamic nature of the field and the importance of these initiatives for Toyota.
Stricker emphasized Toyota's commitment to offering a diverse portfolio of vehicles to meet consumer needs and reduce carbon emissions more effectively. While many companies focus solely on battery electric vehicles (BEVs), Stricker argues that this "one trick pony" approach overlooks other options. Toyota offers a range of powertrains, including hybrids, plug-in hybrids, and conventional gasoline vehicles, allowing them to reach a broader market. This strategy is especially important since BEVs are often more expensive and mainly purchased by wealthier consumers with access to charging infrastructure.
Toyota's hybrid vehicles, like the Prius, are more affordable and accessible, he says, with 40% of their 2024 sales being hybrids. Stricker believes this diverse approach allows more people to contribute to carbon reduction while addressing varying consumer needs.
ON THE COMPANY’S ENVIRONMENTAL SUSTAINABILITY GOALS
Tom Stricker
Stricker discussed the unique challenges the U.S. faces in transitioning to electric vehicles (EVs), highlighting the country’s vast size, car culture, and diverse consumer needs. Unlike smaller nations, the U.S. has consumers with varying lifestyles—some tow boats, live on farms, or reside in cities where driving isn't essential. A key challenge is building the infrastructure needed to support widespread EV adoption. While the U.S. has widespread access to electricity, ensuring sufficient quantities and a resilient grid that delivers clean power remains a significant hurdle. Additionally, low fuel prices make the economics of switching to EVs less compelling for many consumers.
Stricker believes that although electrification is the future of the industry, the transition will take longer than policymakers hope. He pointed out that investments from government initiatives like the Infrastructure and Investment Jobs Act and the Inflation Reduction Act will take time to materialize. In the interim, Toyota’s strategy offers consumers more choices beyond just gasoline or full electric vehicles, with hybrid and plug-in hybrid options that appeal to those not ready for a full EV switch. This approach, Stricker noted, provides a practical solution to help reduce carbon emissions without forcing a binary choice on consumers.
ON HOW THE UPCOMING ELECTION MIGHT IMPACT THE AUTOMOTIVE INDUSTRY
Stricker emphasized Toyota's focus on its customers while navigating the uncertainties of government regulations and politics. He noted that elections can affect the industry, particularly in areas like investment credits for batteries, but Toyota remains customer-centric, building business plans that serve long-term consumer needs.
Despite the unpredictable nature of politics, Stricker highlighted that regulations tend to become more stringent over time, even if there are temporary lulls. Toyota anticipates this trajectory and incorporates it into its planning, ensuring it meets regulatory requirements while maintaining flexibility to adjust to future consumer and market demands.
ON HOW TOYOTA HAS BEEN CREATING ITS OWN ELECTRICITY
Stricker highlighted Toyota’s commitment to achieving net carbon neutrality by addressing the entire lifecycle of its business, not just vehicle emissions. While the vehicles themselves contribute significantly to the industry’s carbon output, Stricker emphasized that Toyota is taking a broader approach, aiming to reduce emissions at every stage, including manufacturing and supply chains.
Toyota has set ambitious public goals for reducing emissions, particularly at its North American assembly plants, where they are investing heavily in renewable energy like wind and solar. Although renewable energy sources may not always be available on-site, Toyota offsets its grid power consumption by investing in solar and wind farms elsewhere. Currently, about 30% of the company’s facility emissions are offset by renewable power, with a goal to reach 100% by shortly after 2030.
Toyota is also collaborating with its suppliers to reduce "embedded carbon" from high-carbon industries such as steel, aluminum, and resin. By challenging suppliers to meet lower carbon goals, Toyota is driving lifecycle emissions down. The company is extending its sustainability efforts to its dealerships through an environmental excellence program aimed at cutting utility costs and emissions, making operations more efficient and eco-friendly.
Another key area of focus is battery lifecycle management, as Toyota prepares for the influx of electric vehicle (EV) batteries reaching the end of their lifespan. Stricker emphasized the importance of recycling and reusing the minerals in these batteries to reduce reliance on mining new materials. As the demand for EVs grows, closing the loop on battery production and reuse will become crucial, and Toyota is actively working to develop these processes. Stricker concluded that now is the time to invest in solutions for battery recycling, as EVs purchased in recent years will soon begin to reach their end-of-life phase.
ON RECENT AND VITAL INNOVATIONS AND PROJECTS
Stricker says Toyota is not only focused on producing a range of conventional and electrified vehicles—like hybrids, plug-in hybrids, and battery-electric cars—but is also exploring the potential of hydrogen fuel cell technology. The Toyota Mirai, a hydrogen-powered vehicle already being sold in California and other parts of the world, represents a major step in this direction. Hydrogen fuel cells work by using hydrogen gas, which, when passed through a chemical process, produces electricity and water. The only emission from the Mirai's tailpipe is water, making it a zero-emission technology. Toyota is optimistic about hydrogen's future as a transportation fuel due to its scalability and refueling advantages, which mimic the ease and speed of conventional gasoline refueling. A hydrogen vehicle can be refueled in just three to five minutes, unlike battery-electric vehicles, which require longer charging times.
However, he adds, the widespread adoption of hydrogen fuel cells faces significant infrastructure challenges. Building reliable hydrogen refueling stations has proven difficult, but Toyota remains committed to this technology. In fact, the company has begun expanding its hydrogen fuel cell systems for larger vehicles, such as heavy-duty trucks and forklifts.
The company has entered into agreements with manufacturers to begin using Toyota’s hydrogen systems in class-A trucks, the large vehicles that transport goods across the country. In contrast to electric-powered trucks, which require enormous and heavy batteries that reduce the amount of cargo they can carry, hydrogen-powered trucks avoid this issue, offering a more practical solution for heavy freight.
In a notable achievement, Toyota has collaborated with its partner, FuelCell Energy, to launch the "Trigent" system at the Port of Long Beach in California. This system utilizes renewable biogas from Northern California to power a large fuel cell, which in turn generates three key outputs: electricity, hydrogen, and water. The electricity produced powers Toyota’s port facility, and any surplus is fed back into the local power grid.
The hydrogen generated is used to refuel hydrogen-powered trucks and Toyota Mirai vehicles arriving from Japan. Finally, the water produced is used to wash the vehicles before they are sent to dealerships. Stricker notes that this innovative system reduces Toyota’s reliance on local water supplies, offsetting up to 40% of the water consumption at the port.
While California has been the central hub for Toyota’s hydrogen initiatives, the company is laying the groundwork for a broader adoption of hydrogen fuel technology in North America. Toyota’s recently launched Hydrogen Headquarters, known as H2HQ, in Southern California, is the nerve center for hydrogen system development and business growth. The company is not only focusing on vehicles but also exploring how hydrogen fuel cells can power generators for industries like data centers, which have growing energy needs due to the rise of digital technology.
In parallel with its hydrogen efforts, Toyota is also ramping up its electrification strategy in the U.S., says Stricker. The company is constructing its first U.S.-based battery electric SUV assembly plant in Kentucky and building a new battery production facility in North Carolina, which is expected to begin operations soon. This aligns with Toyota’s long-standing philosophy of producing vehicles where they are sold, thus reducing supply chain dependencies. The North Carolina plant, in particular, represents a $14 billion investment and will employ around 5,000 team members once completed.
A critical element of Toyota’s overall strategy is to reduce reliance on imported minerals, which are crucial for battery production. While the majority of these minerals, such as lithium and cobalt, are currently sourced from outside the U.S., Toyota is working to localize supply chains and reduce risks associated with relying on foreign resources. In the past, the U.S. was concerned about its dependence on Middle Eastern oil for transportation; now, with the shift to electric vehicles, there is growing concern about dependency on other countries for the minerals needed to build batteries.
Toyota’s portfolio approach, which includes hybrids, plug-in hybrids, and battery-electric vehicles, aims to address these challenges by using available resources more efficiently. For instance, while one 300-mile-range battery-electric vehicle requires approximately 500 pounds of minerals, the same amount of minerals could be used to produce six plug-in hybrid vehicles or 90 hybrid electric vehicles. By spreading these resources across a broader range of vehicles, Toyota believes it can reduce overall carbon emissions more effectively than focusing solely on battery-electric vehicles.
This strategy also extends to Toyota’s broader commitment to carbon neutrality, particularly in its U.S. operations. Toyota plans to source 100% of its electricity from renewable projects in Michigan by 2026. Although the company’s research and development facilities in Michigan do not consume as much electricity as its larger vehicle assembly plants, this initiative is part of Toyota’s comprehensive approach to reducing the carbon footprint of its entire business, from manufacturing to vehicle emissions.
ELABORATING ON TOYOTA’S ENVIRONMENTAL REPORT
Stricker provides insight into Toyota's environmental efforts, emphasizing the company's long-term commitment to sustainability and transparency. He highlights Toyota’s use of five-year environmental action plans, a practice the company has followed for 35 years. These plans set measurable environmental goals, and Toyota openly reports on both successes and failures in meeting these targets.
Stricker mentions two key environmental focuses that don’t receive as much public attention: water conservation and biodiversity. On water, Toyota is taking steps to reduce water usage, especially in water-stressed areas, by adopting conservation practices and exploring new technologies like more water-efficient painting systems for vehicles.
Regarding biodiversity, Toyota is actively creating pollinator habitats at its manufacturing sites for bees and monarch butterflies, recognizing the importance of biodiversity in supporting ecosystems, agriculture, and even pharmaceuticals. This involvement showcases the company's broader environmental responsibility beyond emissions reduction and aligns with supporting local communities and ecosystems.
ON HIS PERSONAL CAREER JOURNEY
Stricker reflects on his career journey and what drives him in the field of regulatory affairs. With a background in electrical engineering, he initially didn't aim for a career in regulation. However, his passion for cars and a desire to find a meaningful application for his engineering skills led him to the U.S. Environmental Protection Agency (EPA). There, he worked on vehicle emissions compliance and recalls, which opened his eyes to environmental issues and conservation.
Stricker notes that his work at the EPA allowed him to combine his love for cars with his engineering expertise while also making a positive environmental impact. He emphasizes the importance of maintaining an open mind about career opportunities, advising young professionals to remain flexible and pursue what genuinely interests them, even if it diverges from their initial plans.
