AUTO

Toyota Announces a $1.3B Investment at Kentucky Plant for New BEV SUV

February 20, 2024

Toyota is reinvesting its profits within the North American automotive market.
The company announced a $1.3 billion investment at its flagship Kentucky facility.
The investment prepares Toyota for the production of a battery electric SUV tailored for U.S. audiences.

Toyota’s strategic move to invest heavily in the electrification of its vehicle lineup heralds a transformative era for the automotive giant, aligning with the industry’s pivot toward sustainable transportation. This monumental $1.3 billion inflow into Toyota’s Kentucky plant not only prepares it for the production of an innovative three-row battery electric SUV tailored for the U.S. market but also brings the total investment to a staggering near $10 billion.

Toyota Investing in Batteries and Communities

The project is not just about assembling a new Toyota BEV SUV; it extends to the establishment of an EV battery pack assembly line within the same Toyota plant, marshaling resources from Toyota Battery Manufacturing in North Carolina, thus consolidating Toyota’s electric future into a cohesive, domestic operation.

Since its inception in 1986, Toyota Kentucky has stood as a cornerstone of the automaker’s operations in North America, endearing itself to an entire workforce and customer base. Almost 9,400 team members form the backbone of this facility, bringing to life some of Toyota’s most cherished models, including the Camry.

Beyond its corporate goals, Toyota is deeply invested in nurturing the communities where it operates, with a significant emphasis on bolstering education and workforce development. Since setting roots in Kentucky nearly four decades ago, the company has contributed over $154 million in philanthropic efforts that resonate throughout the Bluegrass State. In 2023, Toyota’s commitment to community enrichment is evident through its support of 48 education and workforce training initiatives — investments that serve to empower individuals and fortify the bedrock of future generations.

Toyota Moving to Build Where They Sell

Since 2021, Toyota has announced new investments totaling $17 billion into its U.S. manufacturing operations, emphasizing a resolute push toward electrification. These substantial financial infusions are earmarked for the development and assembly of battery electric vehicles, signaling a strategic pivot toward a more sustainable automotive future. Toyota’s decision to localize production including BEV manufacturing aligns with its broader commitment to a “build where we sell” philosophy. This approach not only bolsters the North American economy but also resonates with the evolving consumer preferences for eco-friendly transportation options.