Toyota Motor Corp. said Tuesday it will invest $1.3 billion in its Kentucky factory in the United States as it prepares to begin production of its first electric vehicles in the country there in 2025.
The new investment will add a battery pack assembly line to the plant, which is slated to produce three-row electric sport utility vehicles. The batteries will be supplied by Toyota's new battery plant in North Carolina, the automaker said.
The move comes as the Japanese company announced last year it will make the Kentucky plant, one of its flagship factories in the United States, the company's first location for producing all-electric vehicles in the country.
The plant, which employs over 9,000 people, currently produces the Camry sedan and the RAV4 hybrid SUV, according to the company.
Japanese automakers are ramping up their production capacity in the United States so that their EVs are eligible for tax breaks offered under the administration of President Joe Biden, which requires vehicles to be built in North America.
"We are grateful that they continue to invest in our commonwealth and continue to set a standard for high-quality, well-paying jobs for our citizens," Kentucky Gov. Andy Beshear said in a statement.
