Toyota to build second EV model in Kentucky, invest $1 billion

Toyota announces investments totaling 1 billion US dollars in its US plants in Kentucky and Indiana. Of this, 800 million dollars will go to Kentucky, partly to prepare for the production of a yet-unknown second electric model at the factory for the US market.

Toyota kentucky produktion investition — Image: Toyota

Alongside the battery-electric Highlander unveiled in February, a three-row SUV, Toyota plans to produce a second electric model at its Georgetown plant in Kentucky. The Japanese carmaker is investing around $800 million to prepare for the model’s production launch and to expand assembly capacity for its combustion-engine models, the Camry and RAV4.

However, it remains unclear which electric vehicle Toyota will produce in Kentucky. Speculation among Toyota insiders suggests several possibilities: a battery-electric SUV based on the RAV4, one of the world’s best-selling cars, is a likely candidate. Alternatively, a significantly larger model, such as a battery-electric version of the off-road vehicle Land Cruiser, could be under consideration. Another possibility is a new electric model from the luxury brand Lexus or a Subaru counterpart to the electric Highlander—potentially an electric Ascent with three rows of seats. However, Toyota has not confirmed any of these options.

Toyota announced its investment and plans for the new electric model during a celebration marking the 40th anniversary of its Kentucky factory, where Governor Andy Beshear also spoke.

“Kentucky changed for the better 40 years ago when Toyota chose to make Georgetown its New Kentucky Home, and I am proud to say that partnership and success continues today as we celebrate this remarkable milestone together,” he said.

The governor further emphasised that the Kentucky plant is Toyota’s largest vehicle production facility worldwide, having produced over 14 million vehicles since its opening.

To reach the previously announced total investment of $1 billion, Toyota will allocate a further $200 million to its plant in Indiana. The funds will go towards expanding production capacity for the combustion-engine Grand Highlander, an SUV around 15 centimetres longer than the standard Highlander and offering more space in the third row. This makes it particularly suited to large families and passenger transport services. The Indiana facility also produces the Sienna minivan and the Lexus TX.

toyota.com, insideevs.com (speculation)