LOUISVILLE, Ky. (WDRB) -- Toyota will spend $1.3 billion to prepare its Georgetown, Kentucky, factory to begin making an all-electric sport utility vehicle as soon as next year, the Japanese auto giant said Tuesday.
The new EV will start production at the Kentucky plant in late 2025 or early 2026, according to Toyota.
"We are aggressively moving forward with bringing battery electric vehicles to production at Toyota Kentucky," Toyota's Kim Ogle said in emailed responses to WDRB News.
The $1.3 billion investment — roughly double what the automaker said it would spend during last year's announcement — consists of "facility enhancements and operational upgrades" including "advanced manufacturing equipment and technologies, facility layout improvements and retooling," Ogle said in an email.
In addition to the EV assembly, Toyota also plans to add an assembly line for EV battery packs at the Georgetown plant. The batteries supplied to Georgetown will come from Toyota's under-construction battery factory in North Carolina.
The U.S.-made components and assembly are crucial requirements toward the vehicle's potential eligibility for tax credits worth up to $7,500 per sale under President Biden's Inflation Reduction Act.
To make way for the new EV, Toyota will shift production of its RAV4 Hybrid and Lexus ES from the Kentucky factory next year.
"There will be a transition period to modify the production line and conduct team member training, but no impact to employment," Ogle said.
The Georgetown factory will continue to produce Toyota's popular Camry sedan, which the company is planning to offer exclusively as a gas-electric hybrid, alongside the EV.
"Today's announcement reflects our commitment to vehicle electrification and further reinvesting in our U.S. operations," said Kerry Creech, president of Toyota Kentucky, in a news release. "Generations of our team members helped prepare for this opportunity, and we will continue leading the charge into the future by remaining true to who we are as a company and putting our people first for generations to come."
The investment for the all-new EV brings Toyota investment in its Kentucky factory to $10 billion since it was established in 1986.
Toyota Kentucky plant manager Susan Elkington said last year that the automaker will be able to produce up to 200,000 EVs per year, roughly a third of the Georgetown plant's capacity. But the facility will have the flexibility to swap in production of gas and hybrid models if consumer demand warrants, she said at the time.
This story was updated after initial publication to reflect new information from Toyota regarding the timing of the EV production.
