Toyota Boosts Investment To $1.3B To Bring Battery EV Production To KY

Investment will support future electrification efforts at the flagship Toyota Motor Manufacturing Kentucky (TMMK) facility in Georgetown.

Today, Toyota announced it will increase its investment to $1.3 billion at the flagship Toyota Motor Manufacturing Kentucky (TMMK) facility in Georgetown, KY. The investment will support future electrification efforts including assembly of an all-new, three row battery electric SUV for the U.S. market.

The announcement builds on the company’s May 2023 announcement to invest $591 million in future projects and increase its job retention commitment with the state by 700 full-time employees to establish the company’s first U.S.-assembled battery electric vehicle (BEV) in Scott County. Since 2021, Toyota has announced new investments totaling $17 billion into its U.S. manufacturing operations to support electrification efforts.

Toyota Kentucky
Toyota Kentucky began production in 1988 and is Toyota’s largest plant in the world. (Source: Toyota)

 

Last year, Toyota announced plans to produce an all-new, three-row battery electric SUV at TMMK. The increased investment further supports that commitment, and will add a battery pack assembly line at the facility. The batteries will be supplied by Toyota Battery Manufacturing North Carolina. The project brings the Kentucky plant’s total investment to nearly $10 billion since it began operation.

“You cannot think of the Bluegrass region and Scott County without thinking of Toyota.”

— Governor Andy Beshear

“Today’s announcement reflects our commitment to vehicle electrification and further reinvesting in our U.S. operations,” said Kerry Creech, president of Toyota Kentucky. “Generations of our team members helped prepare for this opportunity, and we will continue leading the charge into the future by remaining true to who we are as a company and putting our people first for generations to come.”

Toyota Kentucky
Toyota will bring an all-new, three row battery electric SUV to production at the Kentucky plant beginning in 2025. (Source: Toyota)

Opened in 1988, TMMK is Toyota’s largest production facility globally and currently employs approximately 9,400 workers. Current production capacity is approximately 550,000 vehicles and 600,000 engines annually, with more than 350 suppliers nationwide — including over 100 in Kentucky.

“You cannot think of the Bluegrass region and Scott County without thinking of Toyota,” said Governor Andy Beshear. “We are grateful that they continue to invest in our commonwealth and continue to set a standard for high-quality, well-paying jobs for our citizens. Thank you, Toyota for yet another $1 billion-plus investment coming to Kentucky.”

State Support For Toyota’s Growth

To encourage investment and job retention in the community, the Kentucky Economic Development Finance Authority (KEDFA) in May 2023 approved a supplemental project to an existing Kentucky Jobs Retention Act (KJRA) program agreement with the company. The performance-based agreement can provide up to $240 million in cumulative tax incentives based on the company’s total cumulative investment of nearly $2.8 billion across the original and supplemental KJRA projects with an annual job target requirement of up to 8,950 over the term of the agreement.

By meeting its annual targets over the agreement term, Toyota can be eligible to keep a portion of the new tax revenue it generates by claiming eligible incentives against its income tax liability and/or wage assessments.

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In addition, Toyota can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.

Since making Kentucky its home nearly four decades ago, Toyota has made more than $154 million in local donations — primarily focused on education and workforce development — which have made a sizeable impact on local communities.

“Every investment Toyota makes is proof of its commitment to employees,” said Chris Cohelia, group leader at Toyota Kentucky. “I joined this company 26 years ago as a production team member. Job stability, competitive pay and opportunities for growth are all reasons I love working here. It’s also exciting to be a part of the team building Toyota’s first battery electric vehicle in North America.”

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