Toyota announced another $1 billion investment to upgrade two of its facilities, including $800 million in Kentucky to build its second EV in the US.
Toyota invests $1 billion in Kentucky and Indiana
The investment is part of Toyota’s plans to funnel $10 billion into its US plants over the next five years, as revealed last November.
Toyota’s latest announcement includes a total of $1 billion in the US, $800 million of which will go toward its Kentucky plant, and $200 million to be invested in Indiana.
The $200 million will be used to ramp up production of the Grand Highland, one of Toyota’s most popular SUVs. The Grand Highlander will join the Sienna minivan at the facility’s east plant, while Toyota will continue building it at the west plant alongside the Lexus TX.
Toyota said the other $800 million will be used to “further Toyota’s multi-pathway approach to electrification by preparing the plant for its second battery electric vehicle” and to increase RAV4 and Camry output.
The upcoming three-row Highlander BEV, due out later this year, will be the first US-made EV Toyota produces at its Kentucky plant, but the company didn’t offer any additional details.
A second US-made EV?
So, what is the mystery electric vehicle? Toyota has yet to confirm it, but Nikkei reported last September that Toyota planned to build two new electric SUVs to replace the outgoing Lexus ES in Kentucky.
Toyota responded to the report, saying it did not announce the production changes at the time, adding it’s always reviewing production plans “to make ever-better cars.” Citing sources close to the matter, the report claimed the two EVs will be based on the Toyota RAV4 and Land Cruiser.
While the bZ is a more rugged, off-road-focused SUV, an electric Toyota Land Cruiser could offer a more upscale option as a rival to the Ford Bronco, Jeep Wrangler, and Defender.
On the other hand, Toyota could simply be planning to build Subaru’s upcoming three-row electric SUV in Kentucky, but the statement would be a bit misleading.
While several automakers, including Ford, GM, and Stellantis, are scaling back on EV plans in the US, Toyota is suddenly ramping up its all-electric lineup.
Toyota launched three new electric SUVs this year: the 2026 bZ4X, C-HR, and bZ Woodland, with the Grand Highlander BEV joining later this year as a 2027 model. With those, Toyota already covers most SUV segments with a compact crossover, a midsize SUV, and a three-row SUV.
The RAV4 fits in between the C-HR and bZ in terms of size. Will we finally see an electric Toyota RAV4 or Land Cruiser? Which one would you buy? Let us know in the comments below.
With its new electric SUVs arriving at dealerships, Toyota is pushing inventory with up to $7,000 in discounts and 0% APR financing to kick things off. If you’re interested in seeing one for yourself, we can help you get started. You can find local offers on the 2026 Toyota bZ, C-HR, and bZ Woodland in your area using the links below.
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