Toyota expands U.S. production with $1B investment

Toyota announced a $1B investment in Kentucky and Indiana plants, expanding production capacity and preparing for future electrification. Learn key details.

Toyota is committing $1 billion to expand its U.S. manufacturing footprint, directing $800 million to Kentucky and $200 million to Indiana as it marks the 40th anniversary of its largest global plant. The move is part of a broader plan to invest up to $10 billion in U.S. operations over five years.

The investment focuses on both capacity expansion and electrification. In Kentucky, the plant is being prepared for a second battery electric vehicle while increasing output of the Camry and RAV4. In Indiana, production capacity is rising for the Grand Highlander, alongside continued assembly of the Lexus TX and the Sienna minivan.

The scale of these facilities underscores the importance of the decision. Toyota’s Georgetown plant is its largest worldwide, with the ability to produce up to 550,000 vehicles and more than 600,000 engines annually, and total output exceeding 14 million units. The Indiana plant, a full-cycle manufacturing site, produced over 427,000 vehicles in 2025, including multiple large SUVs and minivans.

Both sites are already undergoing transformation to support future technologies. Previous investments in Kentucky have been tied to upcoming electric vehicle production and related infrastructure, while Indiana is also being prepared for future electric SUVs. These efforts are supported by Toyota’s battery plant in North Carolina, which supplies batteries for hybrid, plug-in hybrid, and battery electric vehicles.

This aligns with Toyota’s multi-pathway strategy, which combines different powertrain technologies — from hybrids to battery electric and hydrogen systems — depending on market demand and infrastructure. The expansion of U.S. plants reflects how production and technology are being aligned within that broader approach.

At the same time, Toyota continues to invest in workforce development. In Kentucky, new funding supports STEM education programs and university partnerships, adding to more than $150 million already invested in community and educational initiatives in the state.

The United States remains a central pillar of Toyota’s global production network, employing nearly 48,000 people and producing more than 35 million vehicles to date. The latest investments reinforce that role while adapting manufacturing capacity to future demand, from large family vehicles to the gradual shift toward electrified mobility.