Toyota raises stake in EVs with $1.3B investment in Kentucky plant

Toyota (NYSE:TM) is betting another $1.3B in electric vehicles with an investment in its flagship Kentucky Battery Electric Vehicle, or BEV, plant.

The plant will build an all new, three-row electric SUV.

While the other major U.S. automakers are pivoting from EVs, Toyota (TM), Honda (HMC), and Ferrari (RACE) are playing catch up with new models and increased production efforts. Late last year, Toyota (TM) unveiled its EV concept vehicles, the Urban SUV and Sport Crossover.

Honda (HMC) recently called off its joint venture with General Motors (GM) citing a “challenging business environment” but didn’t hesitate to offer two new models independently; the Saloon and Space Hub, both of which will go into production in 2026. The new vehicles are part of a $40B initiative to build up its EV lineup to 30 by 2030.

Ferrari’s (RACE) entry into the EV market is ahead of schedule and expected to launch in the last quarter of 2025. The Ferrari (RACE) supercar, which will be manufactured at the company’s headquarters in Maranello, Italy, will be ready for production this summer.

Toyota's (TM) $1.3B investment supports the future BEV assembly at Toyota Kentucky and adds a battery pack assembly line to the facility.

“Today’s announcement reflects our commitment to vehicle electrification and further reinvesting in our U.S. operations,” said Toyota Kentucky president Kerry Creech.

Separately, Toyota (TM) reported upbeat Q3 results on Tuesday, and raised its full year profit forecast to ¥4.5 trillion from ¥3.95 trillion.

Shares were trading more than 8% higher on Tuesday with a new record high of $221.77.