Toyota is making strides in its commitment to electric vehicle (EV) production with a hefty $1.4 billion investment in its Indiana plant. This investment is earmarked for the development of a future electric 3-row large SUV, a move expected to create around 340 jobs. The Indiana plant, which currently manufactures the Toyota Sienna and Highlander, will be expanded to accommodate the production of this new EV, along with the addition of a battery pack assembly line.

Although details about the new vehicle remain sparse, Toyota assures that it will be a distinct offering within the Toyota brand, larger than the upcoming three-row electric crossover set to roll off the lines in Georgetown, Kentucky. Scheduled for production in 2026, this Indiana-built SUV represents a significant leap in Toyota’s electric vehicle lineup.

The $1.4 billion investment will primarily focus on enhancing the plant’s infrastructure to facilitate EV production, particularly in the east plant where the Highlander crossover and Sienna minivan are currently manufactured. Tim Hollander, president of Toyota Motor Manufacturing Indiana, clarified that the new vehicle will be “chassis-based,” integrating existing Toyota vehicle platforms rather than adopting a skateboard-based EV architecture where the battery pack serves as a structural component of the body. This decision suggests that an existing vehicle on the line will undergo conversion to a full EV rather than introducing an entirely new platform.

Additionally, the investment will fund the establishment of a new assembly line dedicated to building battery packs using lithium-ion batteries supplied by Toyota Battery Manufacturing North Carolina, a facility under construction in Liberty, N.C. This battery plant, slated to commence operations in 2025, will serve Toyota and Lexus EVs, hybrids, and plug-in hybrids in North America.

Despite the focus on EV production, Toyota reassures that the investment will not disrupt the current production of vehicles at the Indiana plant, including the Grand Highlander and Lexus TX large three-row crossovers. This commitment aligns with Toyota’s broader strategy, as the company asserts it has invested a total of $18.6 billion in U.S. manufacturing operations for EVs, hybrids, and plug-in hybrids since 2021.