Toyota has announced a substantial investment of $1.3 billion in its Georgetown, Kentucky factory complex to facilitate the production of a new three-row electric SUV intended for the U.S. market. This investment is part of Toyota’s broader strategy to enhance its electric vehicle (EV) manufacturing capabilities, including the establishment of a production line dedicated to assembling battery cells into packs for various EV models.
Despite the significant injection of capital, Toyota clarified that the investment would not result in additional job creation at the complex, which currently employs around 9,400 workers. Nevertheless, this latest financial commitment brings Toyota’s total investment in the Georgetown plant to nearly $10 billion, underlining the company’s long-term commitment to the facility.
While specifics about the new electric SUV, such as pricing and release dates, were not disclosed, Toyota’s recent initiatives underscore its growing focus on electrification. In October, the company announced an $8 billion investment in a hybrid and electric vehicle battery factory in North Carolina, signaling a substantial expansion of its electric vehicle ambitions. This facility, expected to commence operations in 2025 near Greensboro, is projected to employ over 5,000 people, further bolstering Toyota’s presence in the U.S. electric vehicle market.
Toyota’s investment decisions come amidst increasing pressure from environmental groups urging the automaker to accelerate its transition to fully electric vehicles. While Toyota has historically favored gas-electric hybrid technology, it has set ambitious targets to sell between 1.5 million to 1.8 million electric or hybrid vehicles in the U.S. by 2030, indicating a significant shift in its strategic priorities towards sustainable mobility solutions.