Title: Toyota to Invest $1.3 Billion in Kentucky Factory for New All-Electric SUV

In a move to bolster its commitment to vehicle electrification, Toyota has announced that it will spend an additional $1.3 billion on its Kentucky factory. This investment aims to prepare the facility for the production of a new three-row all-electric SUV, specifically designed for the American market.

The $1.3 billion injection of capital brings Toyota's total investment in the Kentucky factory to nearly $10 billion, marking a significant step forward for the automaker's electric vehicle (EV) strategy. The decision reflects Toyota's determination to keep up with the industry's increasing shift towards battery-electric vehicles.

While Toyota has faced criticism in recent years for lagging behind in the EV race, the company has defended its diverse vehicle portfolio, which includes gas, hybrid, plug-in hybrid, and battery electric vehicles. However, the automaker announced last year its intention to bolster its EV offerings by introducing 10 new battery-powered vehicles by 2026.

The latest investment will primarily support the assembly of the all-electric SUV and the creation of a battery pack assembly line, with production expected to commence in 2025. The new three-row EV will enter a market that already includes competitors like the Kia EV9, which was launched in late 2023. Notably, other manufacturers such as Mercedes, Rivian, Tesla, and Volvo also offer three-row all-electric SUVs, albeit in the premium and luxury segments.

To support the production of the all-electric SUV, Toyota's North Carolina factory will manufacture the battery cells required for the vehicle. The North Carolina facility has also undergone additional investment from the automaker, with plans announced last year to spend $2.1 billion on a new battery plant.

Kerry Creech, president of Toyota Kentucky, expressed pride in the announcement, emphasizing the company's commitment to vehicle electrification and further reinvestments in its U.S. operations. Over the past three years, Toyota has already committed a total of $17 billion towards its U.S. manufacturing operations to support its increasing focus on electrification efforts.

With Toyota's massive investment in its Kentucky factory and plans for expanded EV offerings, the automaker is poised to make significant strides in the electric vehicle market. By diversifying its portfolio and responding to changing consumer demands, Toyota aims to solidify its position as a leading player in the accelerated shift towards a greener automotive industry.