Toyota Invests More into Old Tech in West Virginia

Sign up for CleanTechnica’s Weekly Substack for Zach and Scott’s in-depth analyses and high level summaries, sign up for our daily newsletter, and/or follow us on Google News!

Toyota quickly went from hero to villain in the eyes of many people concerned about the climate and wanting efficient cars. It led the market in hybrid vehicles for years, primarily through its popular Prius model line. However, when the full battery-electric era arrived, it was slow to get onboard. In fact, when the BEV (full battery-electric vehicle) market really picked up steam electrons, Toyota actually engaged in deceitful and harmful counter-narratives and marketing.

There’s no denying or avoiding the BEV revolution now. It’s happening, and every automaker is selling BEVs — some more than others, and in some markets more than others. Even Honda, which was a similar laggard to Toyota, now has a popular electric vehicle in the US market (yes, it’s primarily built by GM, but it’s a Honda). Toyota’s one BEV model, however, is one of the ugliest vehicles I’ve ever seen. (Apologies if you like it.) The design — and the name for that matter — make me think Toyota doesn’t want it to sell well. That sure would make it easier to keep saying their customers don’t want BEVs.

But why is Toyota such a laggard in BEVs when it was such a leader in hybrids. The thing is, this is often how it goes with a series of technology transitions. The leader in one transition is often a laggard in the next transition, as it tries to hold onto its leadership position and has perhaps a bit too much pride in and attachment to the old technology. That seems to be the issue with Toyota when it comes to hybrids and BEVs.

And perhaps it makes some sense. My best friend from college was excited to share with me last year when he got a hybrid car. Of course, I was a bit dumbfounded and quite disappointed. That would have been an impressive move in 2002, but in 2025??? And knowing what I do for a living? But he was earnestly excited about it. This week, I was meeting with a neighbor about putting an EV charging station in my garage. He had installed the necessary 240V outlet in his garage for his daughter and son-in-law when they visit, as they drive a Ford Mustang Mach-E and I think Hyundai IONIQ 5. He and his wife just got a hybrid and went through a similar kind of discussion with his son-in-law about it. There are millions of people who are going to buy hybrids in the coming years, and they may even think that’s a step into the future.

Of course, CleanTechnica readers know hybrids have been old tech for a few generations now. It sounds crazy to many of us to be investing in and excited about old tech. But I guess we are sometimes in a little bubble here.

Getting to the news that triggered all of this, Toyota North America yesterday announced an $88 million investment into its West Virginia factory “to assemble the next generation of hybrid transaxles.” This is a giant Toyota factory, which has received $2.8 billion of investment over time.

“The hybrid transaxle is a crucial component in electrified vehicles that transfers power seamlessly between the engine, electric motor and wheels. Production is set to begin in late 2026, with plans to incorporate the drivetrain component into future Toyota and Lexus models.”

Oy vey.

Well, this is where we are. There’s plenty of work still to do to help the world transition to full, zero-emissions electric cars, trucks, and SUVs.