Toyota to Assemble All-Electric Vehicle in Kentucky Starting 2025
Toyota Motor Corp. has confirmed that it will be producing its first all-electric vehicle (EV) in the United States, with production set to begin in Kentucky in 2025. The automaker’s Georgetown facility is the largest in the world and will be incorporating a three-row EV into its production lines once Toyota’s battery plant in North Carolina is completed. The new battery plant, which is still under construction and scheduled to open in 2025, will receive an additional $2.1 billion investment to “support the company’s drive toward carbon neutrality.”
Toyota’s Commitment to Reducing Carbon Emissions
Ted Ogawa, president and chief executive officer of Toyota Motor North America, stated that the company is committed to reducing carbon emissions as much as possible and as soon as possible. “To achieve this goal, customers must have access to a portfolio of options that meet their needs now and in the future. It is exciting to see our largest U.S. plant, Toyota Kentucky, and our newest plant, Toyota North Carolina, drive us into the future together with BEV and battery production for our expanding electrified lineup.”
The Inflation Reduction Act and Localizing Battery Production
The so-called Inflation Reduction Act, which passed last year and incentivized North American EV and battery manufacturing, has resulted in an additional $50 billion in EV and battery investments for North America since its passing. By allocating taxpayer dollars, the Biden administration has hoped to localize battery production in an effort to outmaneuver China which presently dominates global battery production. The White House has also set a goal of having 50 percent of new vehicle purchases be electric by 2030.
Toyota’s Plans for EV Development and Production
Toyota, which has been later than its rivals to the EV race, plans to release 10 models globally by 2026. The automaker will invest more than $37 billion in EV development and production through the decade’s end. Toyota anticipates it will reach EV sales of 1.5 million in 2026 with the help of a newly developed vehicle platform it says will double driving range, thanks to more efficient battery use, and require half the investment and development resources.
Details on the Kentucky EV
Though details on the Kentucky EV are scarce, it is expected to be a larger model catering to American tastes, with third-row seating. The Toyota bZ5X concept exists and appears to be a larger version of the bZ4X (think Highlander sized) with space for additional seating. Toyota Motor Manufacturing Kentucky (TMMK) is currently responsible for the Camry, RAV4, and Lexus ES. Engine assembly for the four-cylinder A25A-FKS and A25A-FXS hybrid also takes place at TMMK. The automaker is spending an estimated $461 million to retool the plant to build larger EVs.
Conclusion
Toyota’s commitment to reducing carbon emissions and producing all-electric vehicles is a step in the right direction for the automotive industry. The company’s investment in EV development and production, as well as battery production, is a positive sign for the future of electric vehicles in North America. With the Inflation Reduction Act incentivizing North American EV and battery manufacturing, it is clear that the Biden administration is committed to localizing battery production and reducing carbon emissions. The Kentucky EV is expected to be a larger model catering to American tastes, with third-row seating, and will be produced at Toyota’s largest facility in the world.
