Toyota will begin production of its first U.S.-made electric vehicle—the battery-electric version of the Highlander SUV—at its Kentucky plant in the second half of this year. The vehicle, which has already debuted in California, features next-generation lithium-ion batteries offering up to 515 kilometers (320 miles) of range, utilizes the North American Charging Standard (NACS) connector, and runs on Toyota’s proprietary Arene software platform. Battery cells will be supplied by Toyota’s North Carolina plant and LG Energy Solution’s U.S. facilities. Despite the expiration of U.S. EV tax credits and near-term market pressures, Toyota still plans to launch the 2027 model-year electric Highlander in the U.S. and Canada by the end of 2026, while continuing to sell gasoline and hybrid versions. Additionally, Toyota will introduce five new EV models this year, including the bZ series, the C-HR, and two Lexus models, aiming for electrified vehicles to account for 80% of its U.S. sales by 2030.