Toyota will spend an additional $1.3 billion to prepare its Kentucky plant to produce a new three-row electric SUV designed for U.S. consumers, the company said Tuesday. The extra capital pushes Toyota’s total investment in the plant to nearly $10 billion and is the latest example of the automaker’s renewed commitment to electrification.
Toyota has been criticized in recent years for lagging behind the industry’s shift to battery electric vehicles. Toyota executives stood by their decision to offer consumers a mixed portfolio of gas, hybrid, plug-in hybrid and battery electric vehicles. But last year, the company pledged to bolster its EV portfolio with a plan to introduce 10 new battery-powered vehicles by 2026.
The $1.3 billion investment will support assembly of the all-electric SUV and will be used to add a battery pack assembly line. The three-row electric SUV is expected to go into production in 2025. In terms of market, it will compete with Kia’s new three-row EV9, launched in late 2023. Mercedes, Rivian, Tesla and Volvo are also making full three-row electric SUVs, though all of them fall into the premium and luxury segment and are priced to reflect that.
The batteries will be manufactured at Toyota’s North Carolina plant, another facility that has received additional investment from the automaker. Last year, Toyota announced its plans spend an additional $2.1 billion to the new battery installation.
Kerry Creech, president of Toyota Kentucky, said the announcement reflects the company’s commitment to vehicle electrification and further reinvestment in its US operations.
Over the past three years, the company has announced new investments totaling $17 billion in its U.S. manufacturing operations to support electrification efforts.
