Toyota Is Going All in on Hybrid Production in the US

The $912-million investment will create 252 jobs across five states, but several won't come online until 2027.

Photo by: Jeff Perez / Motor1

By: Anthony Alaniz

Nov 18, 2025 at 12:30pm ET

Add Motor1.com as a preferred source in Google

Comment

Last week, Toyota announced its plan to invest an additional $10 billion in the United States over the next five years. This will bring the automaker’s total investment in the country to $60 billion over the 70 years it has operated here. Now, Toyota has announced where the first $912 million will go.

Toyota is investing in five US manufacturing plants that will increase its hybrid production capacity and assist with producing the Corolla hybrid, creating 252 new jobs. Kevin Voelkel, Toyota’s senior vice president of manufacturing operations, said customers are embracing the brand’s hybrids and "our US manufacturing teams are gearing up to meet that growing demand."

Over half of the investment, $453 million, is going to Toyota’s West Virginia factory. The money will help increase the production of four-cylinder hybrid engines, sixth-generation hybrid transaxles, and rear motor stators. Toyota will begin the plant’s expansion in 2027.

Toyota’s Kentucky plant will get $204.4 million to build four-cylinder hybrid-compatible engines, creating 82 jobs. The company’s plant in Mississippi will receive $125 million to begin building the Corolla hybrid in the United States.

In Tennessee, Toyota will invest $71.4 million in its Jackson facility, which will include three new production lines that will begin operation in 2027 and 2028. This will increase the production of hybrid transaxle cases and housings, and engine blocks.

What do you think?

View

Comments

The factory receiving the smallest investment is Toyota’s Troy, Missouri, facility—$57.1 million for a new production line to build new cylinder heads for hybrid vehicles. It’ll begin production in 2027, increase capacity to more than 200,000 cylinder heads annually, and create 57 jobs.

Unlike some of Toyota’s competitors, the automaker has hesitated to go fully electric and has instead focused on hybrids. With US interest in EVs stagnating now that the federal tax credit is gone, consumers are likely going to flock toward hybrids in the coming years, and Toyota will capitalize on that.