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Toyota expands Kentucky plant for electric SUV production

February 14, 2024

Toyota, an automotive manufacturer, has announced a $1.3 billion expansion of its Central Kentucky plant to accommodate a new assembly line for a battery-powered SUV.

The Kentucky plant has been producing hybrid electric vehicles since 2006, and in 2021 proposed a $461 million expansion aimed at future electrification. The Scott County plant is also the site for assembling fuel cell modules for use in hydrogen-powered heavy-duty commercial trucks.

This expansion is more than double the original size, first announced in May 2023. Toyota’s Kentucky plant, which opened in 1986 and employs nearly 9,400 people, is the company’s largest worldwide and is known for producing the popular Camry model.

The Georgetown plant is expected to start assembling the new SUV next year. Current production will continue as retooling for the new vehicle assembly begins. The all-new SUV will be a three-row battery electric vehicle for the U.S. market and will be Toyota’s first U.S.-assembled battery electric vehicle. The Georgetown plant will also add a battery pack assembly line, with batteries being supplied from a $13.9 billion North Carolina plant scheduled to begin production by 2025.

In May 2023, the Kentucky Economic Development Finance Authority approved up to $240 million in economic incentives for Toyota Motor Manufacturing Kentucky, a $2.8 billion project that included introducing a new vehicle to the facility. To receive the full incentives, the total cumulative investment must be achieved by March 31, 2026. Toyota is also required to maintain at least 8,055 jobs or the incentives will decrease. If employment drops below 7,750 full-time Kentucky residents, the incentives may be suspended.