Toyota Delays First U.S.-Made EV Until 2026 Despite $1.3B Kentucky Plant Renovation

Toyota has delayed the production of its first U.S.-made electric vehicle to 2026, despite investing $1.3 billion to renovate its Kentucky plant. The leading automaker initially planned to launch the three-row electric SUV in 2025 but recently announced the postponement.

Toyota Delays U.S. Electric Vehicle Production

According to Teslarati, the first electric vehicle (EV) manufactured in the United States will not be released until 2026 by the leading Japanese automaker, Toyota Motor Corp.

The Japanese carmaker had intended to begin manufacturing its three-row, all-electric SUV in Georgetown, Kentucky, at an assembly facility in the latter half of 2025. To get the assembly plant in Kentucky ready to make electric vehicles, Toyota announced earlier this year that it will spend $1.3 billion renovating the facility. The Kentucky factory has already received a commitment of approximately $10 billion from the corporation.

Kentucky Plant Set for $1.3 Billion Renovation

"Today's announcement is indicative of our dedication to the electrification of vehicles and the continued reinvestment in our U.S. operations," Toyota Kentucky President Kerry Creech talked about the $1.3 billion investment in the Bluegrass state. "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," he said.

A representative from Toyota announced on October 2, 2024, that the electric SUV's production will not begin until 2026, a few months later than originally planned.

Indiana Plant to Produce Two Electric SUVs

By the end of 2026, the Japanese carmaker plans to have produced two fully electric SUVs in Princeton, Indiana. The automaker revealed that Toyota will receive $1.4 billion from the Indiana plant. Additionally, it allocated $11.1 million to enhance STEM programs in Indiana's educational institutions.

The delay has not deterred Toyota from its goal of selling seven all-electric vehicles in the US during the next two years. Toyota has two electric vehicles available in the US market at the moment: the bZ4X, which seats five, and the RZ 450e, which seats four. The two electric vehicles sold in the US by Toyota are both made in Japan.