Kentucky to build all-new battery electric Toyota SUV starting in 2025. Here's what to know

Olivia Evans, Louisville Courier Journal
Updated 6 min read
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Visitors tour the showroom area at the Kentucky Toyota Plant in Georgetown, Kentucky on Thursday. Toyota announced the future production of the new Lexus ES 300 Hybrid and the RAV4 Hybrid at the Georgetown, Kentucky plant on Thursday. The car company plans to invest $13 billion over the next five years in the U.S. with $238 million coming to Kentucky. March 14, 2019

Kentucky's automotive industry continues to lead the way, from producing the Ford Super Duty to leading the nation in electric vehicle, or EV, related projects.

Today, the Commonwealth once again finds itself at the forefront of the automotive industry as Toyota Motor Corporation announced it will begin producing a battery electric SUV starting in 2025 at the Toyota Motor Manufacturing, Kentucky plant located in Georgetown.

“This is incredible news that furthers Kentucky as the center of the electric vehicle sector,” Gov. Andy Beshear said in a news release.

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Here's what we know about the 2025 battery electric vehicle heading to Kentucky.

What new car is Toyota making in Kentucky?

Toyota employee James Burley works on the assembly line at the Toyota Motor Manufacturing, Kentucky plant in Georgetown, Ky. on Feb. 18, 2010.
Toyota employee James Burley works on the assembly line at the Toyota Motor Manufacturing, Kentucky plant in Georgetown, Ky. on Feb. 18, 2010.

This vehicle is Toyota's first U.S.-built all-electric SUV. It will be a three-row SUV.

"The three-row SUV market has an expanding market, as we've already seen, and the electrification of those products we see as the trend changes, people are switching more to electrification," said Susan Elkington, the president of Toyota Kentucky.

To support the production of this SUV in Kentucky, Toyota also announced a $2.1 million investment in its North Carolina battery manufacturing plant for new infrastructure to support the Kentucky production.

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Three years ago, Toyota launched a new paint shop in Kentucky which helped create more space at the site. In 2021, Toyota announced a $461 million investment into the factory in Kentucky to expand the production ability to build larger and more battery electric vehicles by 2025. Elkington said Toyota was able to continue production in the Commonwealth while modifying and updating the facility over the last few years to prepare for the launch of the all-electric SUV.

"Our journey here in Kentucky has actually happened over several years already," Elkington said. "We are making these changes and still maintaining current production, which maintains the employment of all our team members."

Toyota will have to implement a new battery pack assembly process at the Georgetown facility. At this time, Toyota does not plan on employment at the Georgetown facility changing as a result of producing the new electric SUV. Elkington said some employees will begin to transition into electric vehicle production positions.

What is a battery-electric vehicle?

A Toyota car is driven through the Toyota Motor Manufacturing Kentucky, Inc. ahead of a visit by Ivanka Trump, presidential advisor, in Georgetown, Ky. on Thursday, March 28, 2019.
A Toyota car is driven through the Toyota Motor Manufacturing Kentucky, Inc. ahead of a visit by Ivanka Trump, presidential advisor, in Georgetown, Ky. on Thursday, March 28, 2019.

A battery electric vehicle, or BEV, is a vehicle that only uses electricity stored in a battery to function. These cars have a fully electric, rechargeable battery and no gasoline engine.

Similar to gasoline vehicles, EVs must adhere to federal motor vehicle safety standards. According to the U.S. Environmental Protection Agency, EVs "typically have a smaller carbon footprint than gasoline cars, even when accounting for the electricity used for charging."

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"We are committed to reducing carbon emissions as much as possible and as soon as possible," Ted Ogawa,president and CEO of Toyota Motor North America, said in the release. “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 ... drive us into the future together with BEV and battery production for our expanding electrified lineup.”

What is Toyota Motor Manufacturing, Kentucky?

Toyota Kentucky President Susan Elkington celebrates with employees after announcing the facility will assemble Toyota’s first Battery Electric Vehicle in the U.S.
Toyota Kentucky President Susan Elkington celebrates with employees after announcing the facility will assemble Toyota’s first Battery Electric Vehicle in the U.S.

This production facility is the largest vehicle manufacturing plant globally for Toyota. This facility just north of Lexington, produces more than half a million vehicles annually.

According to Toyota, the company has invested more than $8.5 billion in Kentucky since the plant opened 37 years ago.

“Toyota has long been a vital part of the automotive industry in the Commonwealth, and now thecompany is positioned to help lead us into the future," Beshear said.

The BEV SUV project is part of a $591 million commitment by Toyota for future projects at the Georgetown site, according to a press release from the Governor's Office.

The Kentucky Economic Development Finance Authority approved a performance-based incentive for Toyota. The agreement can provide up to $240 million in cumulative tax incentives based on the company’s total cumulative investment of nearly $2.8 billion across projects with an annual job target requirement of up to 8,950 over the term of the agreement. If Toyota meets the requirements, the company will be eligible to keep a portion of the new tax revenue it generates.

"Scott County continues to benefit from the reinvestment and innovation of a new product for our Toyota Motor Manufacturing, Kentucky facility," said Scott County Judge, Joe Pat Covington. "We appreciate their commitment to our county and the Commonwealth."

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Since the plant opened in 1986, Toyota has produced more than 13 million vehicles in Kentucky. The plant, which employs 9,500 people, currently produces the Toyota Camry, Toyota Camry Hybrid, Toyota RAV4 Hybrid, Lexus ES 350, and vehicle parts including four-cylinder and V-6 engines, axels, steering components, and more.

"Toyota Kentucky set the standard for Toyota vehicle manufacturing in the U.S. and now we’re leading the charge with BEVs," said Susan Elkington, president of Toyota Motor Manufacturing, Kentucky.

Toyota has put more than 23 million hybrids and electric vehicles on the road globally. Currently, the company offers 22 electrified vehicle options in the U.S. across the Toyota and Lexus brands. By 2025, the motor brand plans to have an electrified alternative for every Toyota and Lexus model.

How important is the auto industry to Kentucky?

Toyota Kentucky President Susan Elkington sits in a new RAV4 Hybrid model Thursday. Toyota announced the future production of the new Lexus ES 300 Hybrid and the RAV4 Hybrid at the Georgetown, Kentucky plant on Thursday. The car company plans to invest $13 billion over the next five years in the U.S. with $238 million coming to Kentucky. March 14, 2019

The Commonwealth is situated in the geographic center of "Auto Alley," a cluster of the motor-vehicle industry that spans across North America.

According to information from the Automotive News Data Center, Kentucky is the number one producer of light vehicles per capita and a top three producer of passenger vehicles overall.

Kentucky is home to four major auto production plants including the Ford Kentucky Truck Plant and the Ford Louisville Assembly Plant both located in Louisville, the Toyota Motor Manufacturing, Kentucky plant in Georgetown and the General Motors Bowling Green Assembly Plant known for producing Corvettes in Bowling Green.

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More than 550 auto-related facilities operate across more than two-thirds of the state and employ more than 100,00 people. Since June 2020, the Commonwealth has seen more than $9.2 billion in EV-related investments and the creation of more than 8,500 full-time jobs.

"Our state’s automotive sector creates opportunities statewide and is central to the strength of our economy," said Brandon Mattingly, director of marketing and public affairs at the Kentucky Cabinet for Economic Development.

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Contact reporter Olivia Evans at oevans@courier-journal.com or on Twitter at @oliviamevans_

This article originally appeared on Louisville Courier Journal: Toyota picks Kentucky to build its first U.S. battery electric SUV

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