Toyota Motor Corp. said Wednesday it will start producing electric vehicles in its factory in the U.S. state of Kentucky from 2025 and will invest an additional $2.1 billion in battery production.

The Kentucky plant will be the company's first location for producing EVs in the United States, the world's largest economy, and will make three-row electric sport utility vehicles, the automaker said.

The additional investment will shore up production capacity at a new battery factory under construction in North Carolina, which will produce batteries for hybrid cars and EVs from 2025, it said.

File photo shows Toyota Motor Corp.'s bZ4X electric vehicle. (Photo courtesy of Toyota Motor Corp.)(Kyodo)

The new funding will bring the total amount of investment in the North Carolina factory to $5.9 billion, Toyota said.

The announcement comes as U.S. President Joe Biden's administration increases pressure on global automakers to produce all-electric vehicles, one of the fastest-growing car segments, in North America.

Under the Inflation Reduction Act, which was signed into law last year, the country offers a tax break for those who purchase EVs assembled in the region.

The world's biggest automaker said in April it will accelerate its push to electrify its vehicles, which includes a plan to start producing EVs in the United States in 2025.

The automaker plans to sell 1.5 million EVs annually and launch 10 new EV models by 2026.