Toyota to invest $1B in Kentucky, Indiana plants 

On the Dash:

• Toyota is investing $1 billion across Kentucky and Indiana to expand EV and SUV production capacity.
• $800 million will support EV development and Camry and RAV4 output, while $200 million boosts Grand Highlander production.
• The investment aligns with Toyota’s broader $10 billion U.S. commitment and its continued hybrid strategy.

Toyota will invest $1 billion in its manufacturing operations in Kentucky and Indiana as part of its pledge to invest up to $10 billion in the United States.

The company said $800 million will be allocated to its Kentucky plant to prepare for the production of its second battery-electric vehicle and to increase capacity for the Camry and RAV4 assembly lines.

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An additional $200 million will be invested in two Indiana plants to expand production capacity for the Grand Highlander sport-utility vehicle.

Toyota said the investment reflects its long-term U.S. strategy. The company has committed up to $10 billion in domestic manufacturing investments over the next five years, including a previously announced $912 million to boost hybrid vehicle production.

The automaker is also developing a $14 billion battery plant in North Carolina as it expands its electrified vehicle lineup.

Toyota remains the world’s top-selling automaker, delivering a record 11.3 million vehicles in 2025. U.S. tariffs have disrupted the industry, but the company’s exports from Japan to the United States rose 14% to 615,000 vehicles in 2025.

Separately, Toyota and the Toyota USA Foundation committed $4 million to the Driving Possibilities STEM education initiative and $400,000 to Eastern Kentucky University’s manufacturing engineering program.