Toyota plans to build a three-row, battery electric SUV at its Kentucky plant. This will be Toyota's first US-assembled Battery Electric Vehicle (BEV) powered by batteries from the company's North Carolina facility.

Toyota will invest an additional $2.1 billion in the battery plant to support this initiative. The decision to assemble a BEV in the US demonstrates the company's belief in electric vehicles and its commitment to designing, engineering and producing cars for the market.

President and CEO of Toyota Motor North America (TMNA) Ted Ogawa emphasized the company's commitment to reducing carbon emissions and providing customers with even more options. The collaboration between Toyota Kentucky and Toyota North Carolina will expand the electrified lineup and drive Toyota's future in the BEV and battery production sector.

The Toyota bZ4X is the only BEV in its lineup, and it has yet to produce an electric three-row SUV like the Grand Highlander. With hybrid options currently available for the Grand Highlander, it is a candidate for full electrification.

In an interview with Carscoops, TMNA vice president Lisa Materazzo downplayed the possibility of a plug-in hybrid version of the Grand Highlander. This might suggest that Toyota will leap directly from the Hybrid Max to electrification. It might not even be called the Grand Highlander EV. Toyota owns the copyright for the names BZ1X through to BZ5X.

Susan Elkington, President of Toyota Motor Manufacturing Kentucky, expressed excitement about handling TMNA's push for electrification. Kentucky Governor Andy Beshear praised Toyota's decision and highlighted the state's position in the electric vehicle sector.

Toyota's investment in its North Carolina battery manufacturing plant will enhance infrastructure and support future expansion. The facility will develop and produce lithium-ion batteries for Toyota's expanding portfolio of electrified vehicles. It will also help Toyota's upcoming EVs qualify for tax credits.

Over the past two years, Toyota has invested over $8 billion in its US manufacturing operations to support its electrification initiatives. With the upcoming assembly of the battery electric SUV in Kentucky and the battery production facility in North Carolina, Toyota aims at a more sustainable and electrified future.

Of note, Toyota has already put over 23 million electrified vehicles on the road globally and plans to have an electrified option available for every Toyota and Lexus model worldwide by 2025.