Toyota to Invest $1 Billion in US Plants to Boost EV Production
Toyota has announced it will invest $1 billion across its Kentucky and Indiana plants to boost domestic production, with much of it directed toward electric vehicles. Of that total, $800 million will go toward the Georgetown, Kentucky plant to manufacture a second EV domestically, while also ramping up production of the Camry and RAV4. The remaining $200 million will expand Grand Highlander production at its Princeton, Indiana plant, which also builds the Sienna minivan and the Lexus TX SUV. The company released the news on March 23, 2026.
“Toyota’s investment in the U.S. is for the long-term, tied to our philosophy of building where we sell and buying where we build,” said Mark Templin, executive vice president and chief operating officer, Toyota Motor North America. “We have created a tremendous value chain for nearly 70 years. Our teams have contributed to world-class design, engineering, and assembly of more than thirty-five million cars and trucks for our customers in the U.S.”
The first EV destined for Kentucky is the upcoming three-row electric Highlander, which will become an EV-only nameplate going forward after production of the current gasoline Highlander ends this year. The larger Grand Highlander will still offer internal-combustion and hybrid options. Toyota has not revealed what the second electric model will be, though Reuters reported last September that Toyota’s upcoming U.S.-made EVs will be based on the RAV4 and Land Cruiser, citing a person familiar with the matter. The automaker has already showcased the Land Cruiser Se concept, a three-row electric SUV with unibody construction and off-road capability.
It could also be a Lexus. At its Beyond Zero EV roadmap event in 2021, Toyota showcased what it called a Lexus Electrified Concept, a large SUV intended as a more premium counterpart to the new Highlander, competing with the Cadillac Vistiq and Rivian R1S. Nikkei reported last year that Toyota plans to consolidate two of its U.S. Lexus plants into one in response to administration tariffs, involving moving Lexus ES sedan production to Japan and leaving Indiana as the sole U.S. plant producing Lexus vehicles. There is also a scenario where Toyota builds a Subaru-equivalent of the Highlander in Kentucky, potentially a three-row electric Ascent.
Toyota has already shifted its EV ambitions into high gear more broadly. The brand has two new models and one substantially refreshed model on sale for 2026. The updated bZ, formerly the bZ4X, is now available with a cleaner design, more range and faster charging, including a native NACS port from the factory. It is joined by the compact, sportier C-HR and the adventure-ready bZ Woodland wagon. Lexus also has a heavily updated RZ crossover and an all-new ES sedan, which now comes in hybrid and EV trims only. For an automaker that was once skeptical of going all-in on EVs, it represents a meaningful shift in strategy.
“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,” said Kentucky Gov. Andy Beshear. “Toyota Kentucky is Toyota’s largest vehicle manufacturing plant in the world, producing over 14 million vehicles since its doors opened and benefiting Kentuckians through good jobs and a strong economy. We are grateful to our great Toyota partners and look forward to building on years of success for generations to come.”
