Toyota invests $1.4B in US manufacturing for new BEV SUV

Toyota is making a significant move to bolster its manufacturing presence in the US, investing $1.4 billion into its Princeton facility in Indiana. The signficiant investment will pave the way for the assembly of a brand-new, three-row battery electric SUV. With this infusion of capital, Toyota reaffirms its commitment to reinvesting profits into its US operations, bringing the total investment in Toyota Indiana to $8 billion. The initiative is also set to create up to 340 new, sustainable jobs, further enhancing the local economy, according to Toyota.

A key aspect of the investment is the establishment of infrastructure to support the production of the new BEV, along with the addition of a battery pack assembly line. These lithium-ion batteries will be supplied by Toyota Battery Manufacturing North Carolina, a facility with a budget of $13.9 billion, slated to commence production in 2025.

Tim Hollander, president of Toyota Indiana, emphasised the importance of the workforce in this endeavour, stating: “Our team members are the heart of Toyota. We take great pride in producing quality products while providing long-term, stable employment no matter the changes in our industry.

“Our team is committed to delivering this new product with the same quality and performance that Toyota customers expect.”

The Indiana facility, which currently employs over 7,500 team members, is responsible for assembling various Toyota and Lexus models. Michael Baehl, a long-time team member, praised the company’s commitment to job stability and quality work, saying: “I feel fortunate for the years I’ve been with Toyota and am proud of the products we assemble.

“The company’s commitment to long-term job stability and high-quality work provides me with peace of mind. Additionally, the opportunities to enhance my skills and progress in my career have allowed me to achieve goals I never imagined.”

This investment aligns with Toyota’s broader strategy of electrification, as evidenced by its previous announcements totaling $18.6 billion in US manufacturing operations since 2021. By increasing BEV production domestically, Toyota aims to diversify its electrification portfolio.

Indiana Governor Eric J. Holcomb commended Toyota’s longstanding partnership with the state, saying: ”Indiana and Toyota share a nearly 30-year partnership that has cultivated job stability and economic opportunity in Princeton and the surrounding southwest Indiana region for decades.

”Toyota’s investment in the state began with an $800 million commitment and has grown to over $8 billion. Today’s incredible announcement shows yet again just how important our state’s business friendly environment, focus on long-term success and access to a skilled workforce is to companies seeking to expand and be profitable far into the future. Indiana proudly looks forward to continuing to being at the center of the future of mobility.”

The announcement follows a recent $1.3 billion investment in Toyota Kentucky for the production of another all-new, three-row battery electric SUV, further underlining Toyota’s commitment to electrification and US manufacturing expansion.