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Toyota will spend an additional $2.1 billion to build a new battery plant in North Carolina, the latest sign the automaker is trying to catch up with an industry that has embraced the switch to electric vehicles.

The Japanese automaker also announced Wednesday that it will build its first American-made electric SUV at its Kentucky factory, starting in 2025. The three-row car will use batteries supplied by Toyota’s North Carolina factory.

From the outset, the news suggests that Toyota is reinforcing its commitment to electric vehicles. Historically, the company has lagging behind other automakers by announcing new EV models, rather than supporting hydrogen-based vehicles. But earlier this year, Toyota said it plans to introduce 10 new battery-powered vehicleswith a goal of 1.5 million electric vehicles sold per year by 2026.

The battery plant in North Carolina is part of the company’s renewed commitment to electrification, though it is not committed to just fully electric vehicles. Of the six production lines scheduled to come online when production begins in 2025, only two will be dedicated to fully electric EVs. The other four will be for hybrid electric vehicles.

Toyota has not yet shared the projected gigawatt-hour capacity of its plant. In the past, the company has said it could produce enough batteries for 1.2 million vehicles a year.

Increased capex at a US battery factory indicates that government incentives to boost battery manufacturing domestically are working. He Inflation Reduction Lawenacted in August 2022, includes incentives to produce batteries in the US. The result has been a lot of commitments of national and international automobile manufacturers, from Ford and general motors to bmw and hyundai — to launch production on US soil in the coming years.

Toyota initially announced its commitment to build a US factory in 2021. At the time, the Japanese automaker earmarked $1.3 billion for a factory near Greensboro. Last September, Toyota tripled that investment to $3.8 billion. The latest capital injection brings Toyota’s total commitment to $5.9 billion.