Toyota Motor Corp. said Friday it will invest $1.4 billion in its factory in the U.S. state of Indiana to start producing electric vehicles from 2026, making it the company's second EV production site in the country after its Kentucky plant.

The Japanese automaker will hire up to 340 new employees for the project to produce three-row, all-electric sport utility vehicles, it said.

Batteries will be supplied from its new battery factory under construction in North Carolina, according to the automaker.

Its Kentucky plant is scheduled to start producing a different three-row SUV model in 2025.

The automaker is expanding its EV production capacity in the United States to make its vehicles eligible for the country's tax credits program, recently introduced by President Joe Biden's administration.

To be eligible for the credits, EVs must be built in North America, a condition that has prompted many automakers to ramp up investment in the region.

The Indiana factory currently produces the Sienna minivan and the Highlander SUV models, among other cars.

==Kyodo

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