As global automakers push toward electrification, Toyota is laying the groundwork for a strategic shift in Canada. Its Ontario-based manufacturing plants in Cambridge and Woodstock are set to produce the upcoming sixth-generation Toyota RAV4, which will be available exclusively as a hybrid or plug-in hybrid model. While battery-pack production lines haven’t officially been announced, analysts believe this move signals Toyota’s intention to bring more EV-related manufacturing to Canada.
Check out: Toyota Canada Manufacturing Overview
Ontario Plants at the Center of Toyota’s Hybrid Plans
Toyota Motor Manufacturing Canada (TMMC) already plays a vital role in Toyota’s North American footprint, assembling some of the brand’s most popular vehicles, including the Toyota RAV4, RAV4 Hybrid, and Lexus RX.
The 2026 RAV4 will debut in May 2025, and by the end of that year, production will begin in Ontario. What’s notable? This RAV4 generation will ditch the traditional gasoline-only powertrain in favor of electrified variants only — a clear signal of where Toyota is headed.
Check out: Toyota’s 2025 North American Electrification Strategy – Reuters
Battery-Pack Lines Not Confirmed — But the Writing’s on the Wall
As of now, Toyota has not officially announced battery-pack assembly lines at its Canadian plants. However, company leadership has hinted at future developments.
Frank Voss, President of TMMC, said in recent interviews that Toyota is being “cautious but ready” to expand its EV-related operations in Ontario once market conditions and policy landscapes align. This reflects Toyota’s broader strategy of measured electrification — the company has taken a slower approach than competitors but remains committed to hybrid and plug-in hybrid vehicles in the short term.
Check out: Toyota’s Electrification Roadmap – Green Car Reports
Interestingly, Toyota is investing $13.9 billion USD in a massive battery-cell manufacturing plant in Liberty, North Carolina, which is expected to be operational by 2025. That facility will initially produce 30 GWh worth of cells per year — enough to power hundreds of thousands of electrified vehicles.
Check out: Toyota North Carolina Battery Plant Details – Electrek
Why Ontario Is a Likely Candidate for Battery Expansion
Ontario is fast becoming a hotbed for EV battery supply chain activity. According to Invest Ontario, the province has attracted over C$50 billion in investments from global automakers, including Volkswagen, Stellantis, Honda, Ford, and General Motors.
Several key advantages make Ontario a logical choice for Toyota’s next move:
- Access to critical minerals through Canada’s Critical Minerals Strategy
- Government support through programs like the Net Zero Accelerator
- Proximity to existing Toyota production lines
- A highly trained automotive workforce
Check out: Canada’s Critical Minerals Plan – Government of Canada
The Next RAV4: Paving the Road to Electrification
With the next-gen RAV4 launching in hybrid-only configurations, Toyota is doubling down on its electrified but not fully electric strategy. This aligns with the company’s belief that hybrids still play a crucial role in reducing emissions while bridging the gap toward full electric vehicles (EVs).
Check out: Why Toyota is Betting Big on Hybrids – The Verge
Toyota’s Ontario factories are already hybrid-ready — but producing battery packs locally would streamline supply chains, cut costs, and reduce dependence on overseas imports. Experts believe it’s only a matter of time before Toyota invests directly in battery-pack assembly in Canada.
Analyst Insights: What’s Next?
Automotive market watchers suggest Toyota may be waiting for:
- EV adoption rates to increase in North America
- More infrastructure support from provincial and federal governments
- Stronger consumer incentives and charging networks
Once these factors converge, Toyota could follow in the footsteps of other OEMs building battery gigafactories in Canada.
Check out: EV Gigafactory Boom in Canada – Financial Post
Final Thoughts
Toyota’s Ontario plants are poised to become even more critical in the automaker’s North American operations. The 2026 RAV4 will be hybrid and plug-in hybrid only, signaling Toyota’s confidence in electrified vehicles and its commitment to Ontario-based production.
While there’s no official word on battery-pack lines yet, the broader picture is clear: Ontario is ready, the infrastructure is growing, and Toyota may soon deepen its Canadian footprint — electrifying not just vehicles, but the future of Canadian auto manufacturing.
Stay connected to Carnewsworld for real-time updates on Toyota and other major automakers leading the EV revolution in Canada.
