Toyota’s $912 Million Boost to U.S. Hybrid Manufacturing

Toyota announces a $912 million investment to expand U.S. hybrid manufacturing across five states, increasing jobs and production capacity; read the full update.

Toyota is expanding its industrial footprint in the United States with a $912 million investment aimed at boosting production of hybrid powertrains and related components. The move fits into the company’s broader commitment to invest up to $10 billion in U.S. manufacturing over the next five years.

The initiative responds to the growing demand for hybrid vehicles across the country. Toyota notes that nearly half of its U.S. sales already come from electrified models, making expanded manufacturing capacity essential to keep pace. The new investment is spread across facilities in West Virginia, Kentucky, Mississippi, Tennessee, and Missouri, bringing additional jobs, new production lines, and upgraded capabilities for hybrid-compatible engines, transaxles, and other key systems.

One of the most notable developments is the introduction of the hybrid-electric Toyota Corolla at the Mississippi plant—the first time the model will be assembled in hybrid form in the United States. At the same time, the company’s largest global plant in Kentucky is adding new machining equipment for four-cylinder hybrid-compatible engines. In West Virginia, Toyota is increasing production of hybrid transaxles and motor-generators, while facilities in Tennessee and Missouri are preparing new lines for transaxle housings, engine blocks, and cylinder heads.

Several of these upgrades are scheduled to go online in 2027 and 2028, aligning with Toyota’s multi-pathway electrification strategy, where hybrids continue to play a central role. Parallel investments in the North Carolina battery plant—capable of producing tens of gigawatt-hours of battery capacity and supporting models such as the Camry Hybrid, Corolla Cross Hybrid, RAV4 Hybrid, and an upcoming three-row BEV—demonstrate the company’s integrated approach to expanding its electrified lineup.

State leaders have welcomed the investments, citing benefits for local economies, job creation, and long-term industrial development. Altogether, Toyota’s actions reinforce its long-standing philosophy to build where it sells, strengthening its U.S. presence while adapting to shifting consumer demand for hybrid and electrified vehicles.