Toyota is making significant strides in expanding its electric vehicle (EV) lineup in the United States. The company has announced plans to invest $1.4 billion in its Indiana plant, which currently produces the Highlander, Grand Highlander, Sienna minivan, and Lexus TX. This investment will bring several important developments to the plant.
Firstly, Toyota intends to assemble an EV on the same production line that currently builds the Sienna and Highlander models. According to a Toyota executive, this upcoming EV will be “chassis-based,” ruling out the use of a skateboard architecture. While this does not confirm the presence of an electric Highlander in the near future, it does indicate Toyota’s commitment to expanding their EV offerings.
Secondly, the investment will establish a battery pack assembly line. The cells for these battery packs will come from Toyota’s joint venture with Panasonic, called Toyota Battery Manufacturing North Carolina (TBNMC). Production at TBNMC is expected to commence in 2025. This move highlights Toyota’s dedication to developing its in-house battery technology.
Despite these developments, Toyota has clarified that there will be no immediate changes to the vehicle nameplates currently being produced at the Indiana plant. Additionally, the production capacity at the plant is already substantial, with the capacity exceeding 420,000 vehicles per year. This suggests that the introduction of an electric Highlander will not require an increase in production capacity.
While an electric Highlander has yet to be confirmed for release around the 2026 model year, it is worth noting that Toyota has applied to trademark the name Lexus TZ450e and TZ550e. If an electric Highlander does make its way to the market, it is likely that a Lexus TZ variant will follow shortly after.
Furthermore, as part of the investment in the Indiana plant, Toyota plans to hire an additional 340 employees. This will further strengthen the workforce, which already consists of over 7,500 individuals. The addition of these new positions demonstrates Toyota’s commitment to job creation and economic growth in the region.
It is important to note that the developments in Indiana are separate from Toyota’s plans for an electric vehicle at its Georgetown, Kentucky, plant (TMMK). The upcoming vehicle to be produced there is referred to as the bZ5X, a three-row EV SUV that will be smaller than the models manufactured in Indiana. In addition, Toyota recently contributed $3 billion to expand a battery cell manufacturing facility being built by LG Energy Systems in Holland, Michigan. This facility is expected to be operational by 2025 and will secure enough cells annually for approximately 250,000 EVs.
Toyota’s investment in the Indiana plant and its collaboration with Panasonic and LG Energy Systems showcase the company’s commitment to electric mobility in the United States. The introduction of an EV assembly line, battery pack assembly line, and the hiring of additional employees will contribute to Toyota’s ongoing efforts to develop and expand its EV lineup. As consumers increasingly embrace electric vehicles, Toyota aims to position itself as a leading player in the market, offering a diverse range of electrified options that cater to different customer preferences and needs.