Dive Brief:
- Toyota will invest $1.4 billion to assemble an all-new, three-row battery electric SUV at its manufacturing plant in Princeton, Indiana, according to a press release.
- The automaker said the investment will also establish a new battery pack assembly line using lithium-ion batteries supplied by Toyota Battery Manufacturing North Carolina, a $13.9 billion facility slated to begin production in 2025.
- The investment will create up to 340 new jobs and bring Toyota’s total investment in the facility to $8 billion. The plant’s 7,500 employees currently assemble the Sienna, Highlander, Grand Highlander and Lexus TX.
Dive Insight:
The expansion of the Indiana plant comes as Toyota begins to execute its long-term electrification plans.
In February, Toyota announced a $1.3 billion investment in Toyota Kentucky for the production of a separate all-new, three row battery electric SUV. The Georgetown, Kentucky plant is also adding a battery pack assembly line.
The automaker plans to launch an electrified version of every Toyota and Lexus model it sells globally by 2025. In the interim, the company aims to produce 190,000 battery-powered vehicles in 2024.
In total, Toyota plans to invest more than $70 billion in electrification by 2030, according to its website, with hybrid and fully electric models accounting for up to 70% of the company’s U.S. sales by 2030.
Other automakers are ramping up EV production, too, despite waning demand.
On Thursday, Honda announced a CAD $15 billion investment to establish two facilities in Ontario. The automaker said last week that it is also making progress on its Ohio EV hub.
During its earnings call Tuesday, Tesla announced it is accelerating its timeline to launch new models, including a more affordable vehicle. Without disclosing financial details, CEO Elon Musk said the company will start production on new models early next year, rather than the second half of 2025 as previously stated.
GM, BMW, Kia and Hyundai have also announced plant expansions for both EV and battery production.
