Toyota is taking the leap and investing more in the United States. The veteran automaker plans to invest more in its North Carolina battery plant in preparation for a new battery-electric SUV.
Toyota’s electric SUV will be assembled in the United States, qualifying for the Inflation Reduction Act’s (IRA) electric vehicle (EV) tax incentives. Toyota Motor Manufacturing, Kentucky, Inc (TMMK) will produce the all-electric, three-row SUV starting in 2025. The new SUV will be Toyota’s first battery electric vehicle (BEV) assembled in the United States.
“This is incredible news that furthers Kentucky as the center of the electric vehicle sector,” said Kentucky Governor Andy Beshear. “Toyota has long been a vital part of the automotive industry in the commonwealth, and now the company is positioned to help lead us into the future. I want to thank the company’s leaders for their commitment to our state’s incredible workforce, and I can’t wait to see what’s next for Toyota and Kentucky.”
TMMK is the Japanese automaker’s largest vehicle manufacturing plant in the world. The facility has a vehicle production capacity of 550,000 per year and can produce more than 600,000 engines annually. TMMK is located in Georgetown, Kentucky, and made its first Camry in May 1988.
The Asian car maker plans to produce fully electric cars alongside combustion-powered vehicles in Kentucky. In February, Toyota announced its plan to build 10,000 electric SUVs monthly.
The all-electric SUVs will be powered by batteries from Toyota North Carolina at the Liberty plant. Toyota is investing another $2.1 billion in the battery plant for a total investment of $5.9 billion in the North Carolina-based facility.
Toyota’s Liberty plant will develop and produce lithium-ion batteries. The battery facility will start running by 2025 with six production lines. Liberty plant will dedicate two battery production lines for BEVs and four for hybrid electric vehicles.
Toyota’s new electric SUV has a shot at receiving the IRA’s entire $7,500 tax credit with vehicle and battery assembly in the United States.