Is Toyota Finally Serious About EVs? $2.7B Plants Say Maybe

Toyota announced massive investments totaling $2.7 billion to build new battery electric vehicles (BEVs) at its manufacturing plants in Kentucky and Indiana. The investments will create hundreds of new jobs in the two states as Toyota ramps up electric vehicle production in the United States.

Kentucky BEV Plant Investment

In February 2024, Toyota revealed plans to invest $1.3 billion into its Georgetown, Kentucky plant to produce an all-new three-row battery electric SUV. This will be the first Toyota BEV assembled in Kentucky.

Indiana BEV Plant and Battery Pack Investment 

Toyota is now following that up with a $1.4 billion investment in its Princeton, Indiana assembly plant. The funds will prepare the factory for production of another all-new three-row electric SUV. Additionally, a new battery pack assembly line will be added using lithium-ion batteries from Toyota’s $13.9 billion battery plant opening in North Carolina in 2025.

The Indiana investment alone will create up to 340 new jobs at the Princeton factory, which currently manufactures the Toyota Sienna, Highlander, Grand Highlander and Lexus TX models.  

“Toyota’s commitment to long-term job stability and high-quality work provides me with peace of mind,” said Michael Baehl, a 26-year Toyota Indiana team member.

Toyota’s Total U.S. Manufacturing Investment Tops $18 Billion

Since 2021, Toyota has announced new investments exceeding $18.6 billion into its U.S. production operations to accelerate electrification efforts. Increasing BEV output across America allows Toyota to offer more electric models aligned with its electrification strategy.

“Toyota and Indiana share a nearly 30-year partnership cultivating economic opportunity in Princeton and the surrounding region,” said Governor Eric J. Holcomb. “Today’s announcement shows our state’s business-friendly environment and skilled workforce were key for this expansion.”

As one of the world’s greenest automakers, Toyota offers 27 electrified vehicle options and leads all brands with the most electric cars on U.S. roads today. The new Kentucky and Indiana plants will further Toyota’s leadership in sustainable mobility.

Carlist Thoughts

Toyota has been flip-flopping on its electric vehicle strategy for years, failing to fully commit to EVs despite the industry shift away from gas-powered cars. However, this $2.7 billion investment in new EV plants in Kentucky and Indiana is welcome news, signaling Toyota may finally be getting serious about electrification. That said, the automaker still seems to be hedging its bets, with global sales in 2023 rising 7.2% to 11.2 million vehicles thanks largely to its hybrid models rather than full battery electrics.

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