toyota second us ev – Toyota announced a $1 billion investment on March 23, 2026, to upgrade its manufacturing operations in Kentucky and Indiana. This funding is part of a broader commitment made in November 2025 to invest up to $10 billion in U.S. plants over the next five years.
The investment is divided between two major facilities to boost capacity for best-selling models and advance the company’s “multi-pathway” electrification strategy:
Toyota Kentucky (Georgetown): $800 Million
The Kentucky plant, which is Toyota’s largest manufacturing facility in the world, will receive the bulk of the funding.
- EV Production: The funds will prepare the plant for its second battery electric vehicle (BEV). This follows a previous announcement to build an all-electric three-row SUV at the site.
- Capacity Boost: A portion of the investment will be used to increase production capacity for the Camry sedan and the RAV4 crossover, two of Toyota’s most popular models in North America.
- Community Support: Toyota also committed $4.4 million to local education, including STEM programs for Scott and Fayette County Schools and a manufacturing engineering program at Eastern Kentucky University.
Toyota Indiana (Princeton): $200 Million
The Indiana plant will use its share of the investment to expand production of a key SUV model.
- Grand Highlander Expansion: The $200 million is specifically aimed at increasing the assembly capacity for the Toyota Grand Highlander.
- Facility Milestone: The announcement coincides with the 30th anniversary of the Indiana plant, which also produces the Sienna minivan and the Lexus TX.
Strategic Context toyota second us ev
This investment marks a significant step toward Toyota’s goal of producing vehicles where they are sold. By expanding U.S. production, Toyota aims to:
- Meet Demand: Address the high consumer demand for SUVs and hybrids.
- Electrification: Transition toward carbon neutrality while still offering a variety of powertrain options (hybrids, plug-in hybrids, and BEVs).
- Mitigate Tariffs: Localize more production to reduce exposure to potential import tariffs and logistics costs.
- https://pressroom.toyota.com/driven-by-people-powering-the-future/