Toyota’s $912M Hybrid Upgrade: Major Changes Coming to U.S. Factories

Toyota is taking another major step forward in its long-running commitment to build more vehicles in the United States, especially as demand for hybrid technology continues to rise. With a fresh investment of $912 million spread across five states, the company is preparing to expand production capacity, strengthen its hybrid lineup, and bring hybrid-electric Corolla models to American assembly lines for the first time. It is a big move, not just in scale, but in the message it sends about Toyota’s confidence in its U.S. workforce and the future of electrified mobility.

The heart of this announcement revolves around adding 252 new jobs and upgrading facilities in West Virginia, Kentucky, Mississippi, Tennessee, and Missouri. Each location plays a different role, but together they form a larger picture of Toyota preparing for the next generation of hybrid powertrains. It is a reminder that even as the automotive world races toward full electric vehicles, hybrids remain a core part of Toyota’s strategy. And judging by customer demand, that strategy is paying off.

In West Virginia, Toyota is committing $453 million and adding 80 new jobs to expand production of 4-cylinder hybrid-compatible engines and sixth-generation hybrid transaxles. They are also gearing up for new shift patterns to boost efficiency starting in 2027. This facility already builds more than 1 million engines and transmissions each year, and this expansion shows how vital it is to Toyota’s network.

Kentucky, home to Toyota’s largest manufacturing plant worldwide, will receive a $204.4 million investment. This includes 82 new jobs and an all-new machining line dedicated to 4-cylinder hybrid engines. With the ability to assemble up to 700,000 powertrains annually, this facility continues to be a powerhouse for Toyota in North America.

In Mississippi, Toyota is investing $125 million to build the hybrid-electric Corolla locally for the first time. That shift signals not only a production milestone but also Toyota’s intent to grow hybrid options in its most accessible mainstream models.

Tennessee will see $71.4 million in upgrades and 33 new jobs to support expanded production of hybrid-related components, including engine blocks and housings. The new production lines beginning in 2027 and 2028 will boost capacity by nearly 500,000 units.

Finally, Missouri will receive $57.1 million and 57 new jobs to add a new cylinder head production line. That upgrade will increase capacity by more than 200,000 units when production begins in 2027.

Toyota’s message is clear: hybrid technology is here to stay, and the company is preparing for a long runway of demand. Nearly 50 percent of its U.S. sales now come from electrified vehicles, and this investment helps Toyota continue building vehicles where it sells them.

The company is also thinking long term when it comes to developing future talent. Through the Toyota USA Foundation’s Driving Possibilities initiative, Toyota is investing $110 million into hands-on STEM education for students and families across the country.