Lexus ES Production Ends as Kentucky Plant Shifts to EVs

Lexus ES production in Kentucky ends after a decade as Toyota confirms a shift to the Highlander EV and new battery investment. Learn what changes next.

Production of the Lexus ES in Kentucky has come to an end, as the final sedan rolled off the line at Toyota Motor Manufacturing Kentucky (TMMK) in Georgetown. The move closes a decade-long chapter that began in 2015, when Lexus started building vehicles in the United States for the first time in its history. Over roughly ten years, about 440,000 ES sedans were assembled at the plant, supported by a $350 million investment, a new production line, and 3,750 jobs.

The factory is now entering a new phase. In February 2024, Toyota announced a $1.3 billion investment in the Kentucky facility to prepare it for electrification, including production of an all-new, three-row battery electric SUV for the U.S. market. The company has since confirmed that this vehicle will be the next-generation Highlander, marking Toyota’s first three-row BEV for the United States and its first battery electric vehicle assembled in America. Production of the 2027 model year Highlander is expected to begin later in 2026, with sales projected toward the end of that year.

The investment includes the addition of a battery pack assembly line at the Georgetown plant. Battery cells will be supplied by Toyota Battery Manufacturing North Carolina (TBMNC) in Liberty, which began shipping batteries in 2025. At full capacity, the North Carolina facility is planned to operate 14 production lines — four dedicated to hybrid batteries and ten for battery electric and plug-in hybrid vehicles — forming a broader North American supply chain aligned with Toyota’s electrification strategy.

The 2027 Highlander EV is set to offer battery options of 77 kWh and 96 kWh, depending on configuration, with a maximum estimated range of up to 320 miles in one version. These specifications underscore the strategic importance of the Kentucky plant as Toyota transitions toward large-scale electric vehicle production in the United States.

At the same time, Toyota continues its collaboration with Subaru. Industry reports indicate that one of Subaru’s upcoming electric models will be produced at a Toyota facility in the U.S., with publications suggesting a potential link to a three-row electric SUV related to the Highlander project. However, official technical details regarding the Subaru variant have not yet been disclosed.

As for the Lexus ES itself, the all-new eighth-generation model has already made its global debut at Auto Shanghai. Lexus confirmed that the rollout will begin in mid-2026. For the first time, the ES will be available not only as a hybrid but also in a fully electric version. The end of ES production in Kentucky therefore reflects a shift in manufacturing strategy rather than the end of the model, as production focus moves toward new architectures and electrified platforms.

For Georgetown, the transition represents more than a model change. It signals a technological pivot — from a sedan that symbolized Lexus’ American manufacturing milestone to a large electric SUV that embodies the company’s forward-looking strategy.