Long a hold-out, the company is getting on board with EVs
of ConsumerAffairsMay 29, 2025
- Toyota plans to build two new all-electric vehicles in the U.S. starting next year as part of a broader EV expansion, including seven models by mid-2027.
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The company will lean on exports and hybrid dominance as a buffer against slower-than-expected EV adoption in the American market.
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A new battery factory in North Carolina will power the strategy, producing up to 300,000 EV batteries annually at full capacity.
Toyota Motor Corp. has been moving cautiously on electric vehicle (EV) production but it is shifting gears. It’s preparing to launch two U.S.-made all-electric models next year, adding to its growing lineup of EVs and signaling a deeper investment in electrification even as it hedges with hybrids and global exports.
By mid-2027, Toyota aims to offer seven EV models in U.S. showrooms. That includes two American-built vehicles, three imports arriving next year, and two already on the market: the bZ4X (soon to be renamed bZ) and the Lexus RZ.
Export strategy as market insurance
Toyota executives remain wary about EV demand in the U.S., where battery electric vehicles accounted for just 8% of sales in 2024. Toyota sold fewer than 30,000 fully electric cars domestically last year a fraction of competitors like Tesla and Hyundai.
To manage risk, the automaker plans to tap overseas markets to absorb potential U.S. oversupply. It typically only adds a vehicle to a factory lineup if confident in 100,000150,000 units in annual sales, meaning export flexibility is key.
That outlook could be complicated by geopolitical factors. Any trade conflict sparked by PresidentTrumps proposed tariffs could disrupt Toyotas international supply and export plans.
Battery power from the heartland
At the core of Toyotas electrification strategy is a sprawling battery facility in Liberty, North Carolina. Spanning 1,850 acres, the plant will begin shipping lithium-ion cells later this year. Ten of its 14 production lines are dedicated to EV batteries, with the rest focused on hybrids.
When fully operational, the site will support the production of more than 30 gigawatt-hours annually enough to power 800,000 hybrid vehicles, 150,000 plug-in hybrids, and 300,000 all-electric vehicles.
The factorys first hybrid battery line is expected to come online next month, with additional lines launching through 2034.
U.S. plants gear up for EV transition
Toyotas two major American factories are also pivoting:
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Georgetown, Kentucky, Toyotas largest global plant, will host one of the new electric models. It currently produces top-selling vehicles like the Camry (now hybrid-only), the RAV4 (soon ending gasoline-only versions), and the Lexus ES.
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Princeton, Indiana, where large models like the Highlander, Grand Highlander, and Sienna are built, will produce another new EV model though Toyota hasnt disclosed what it will be.
Meanwhile, three new imported EVs will hit U.S. dealerships next year: the bZ Woodland, a new CH-R crossover, and an all-electric version of the Lexus ES.
Catching up without giving in
Toyotas strategy reflects both urgency and restraint. Once a skeptic of aggressive EV mandates, the company has become more vocal about letting the market dictate pace.
For now, Toyotas hybrid dominance with nearly 80% of U.S. sales already electrified in some form provides a strong foundation. But as the EV era accelerates, Toyotas new investment signals its no longer content to trail the pack.
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