Toyota invests US$1 billion to produce second EV in the US: what's coming?

Toyota announces a US$1 billion investment to expand EV production in the US, focusing on Georgetown and Princeton, and envisions a second electric model.

Toyota increases EV bet in the US with $1 billion

The automaker confirmed an ambitious plan to expand electric vehicle production in the United States, announcing a total investment of US$ 1 billion across its factories in Kentucky and Indiana.

Of this amount, US$ 800 million will go to the Georgetown, Kentucky plant, enabling the manufacture of a second EV in the country and expanding production of the Camry and RAV4 models.

The remaining US$ 200 million will be allocated to the expansion of the Grand Highlander line at the Princeton, Indiana plant, which also assembles the Sienna and the Lexus TX.

What comes next: the first and second EV

The first EV to be produced in Kentucky is the three-row electric Highlander, which will transition to an all-electric line after the current gasoline Highlander concludes this year. The Grand Highlander will continue to offer internal combustion and hybrid options.

Toyota has not yet revealed what the second electric model will be, but there are already clues. Reuters reports indicate that future EVs manufactured in the US are expected to be based on the RAV4 and the Land Cruiser, with the introduction of the Land Cruiser Se, a three-row electric SUV with unibody construction and off-road capabilities.

There is also the possibility that this vehicle could be launched under the Lexus brand. In 2021, during the Beyond Zero EV Roadmap, the company showed the Lexus Electrified Concept, a large SUV that could act as a premium version of the Highlander, competing with models like the Cadillac Vistiq and the Rivian R1S.

Another scenario points to the convergence of strategies: Nikkei reported last year that Toyota planned to consolidate two Lexus factories in the US, moving ES production to Japan while keeping Indiana as the only US plant producing Lexus.

Possible additional paths and what to expect for 2026

There is also speculation about an electrified Subaru inspired by the Highlander, possibly an electric Ascent to be produced in Kentucky. Subaru is expected to reveal its official EV at the New York Auto Show next week.

On the 2026 radar, Toyota has two new models and a substantial refresh in the pipeline. The modern bZ, renamed from the bZ4X, arrives with greater range, faster charging, and NACS port directly from the factory, accompanied by the C-HR and the bZ Woodland wagon. Lexus follows with a restyled RZ and a new ES, available only in hybrid and EV versions.

This change in strategy, moving away from an initially skeptical stance towards EVs, indicates a significant shift towards the future of electric mobility.

Readers' opinion: do you believe this move signals a real turning point for Toyota in the US EV market? Leave your opinion in the comments.