Toyota will cover part of the financial burden that its suppliers face after halting the Lexus LF-ZC EV project, which had been slated to debut new battery cells, Gigacasting production methods, and multiple efficiency breakthroughs. The decision created an unprecedented impact on partners and eliminates a central model from the automaker's future EV plans.
The abrupt termination has delivered what multiple outlets describe as an unprecedented shock to the supply chain.
Suppliers will receive partial compensation for costs tied to the cancellation.
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Tesla and SpaceX have confirmed Grimes County, Texas as the site for their Terafab semiconductor megafactory, with the first phase costing roughly $16.8 billion. The project targets the largest chip manufacturing facility on the planet to supply over 1 terawatt of compute per year that exceeds current and future global production capacity.
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