Toyota Motor plans to invest $1.34bn in Argentina to develop a fully electrified vehicle plant, described as the “largest single investment" in the country’s automotive industry.

In a post on X, Argentina’s Economy Minister Luis Caputo said the project would involve a new plant producing a 100% electrified vehicle, a technology not currently manufactured in Argentina.

Its Argentine subsidiary, Toyota Argentina, has received evaluation committee approval to join Argentina’s RIGI incentive regime, or Incentive Regime for Large Investments, for the proposed project at its industrial site in Zárate, Buenos Aires province.

The project is expected to create approximately 3,600 jobs during construction and around 2,600 operational roles, including direct and indirect positions.

According to a translated version of Toyota’s statement, joining the RIGI is a “key milestone” enabling the project to proceed towards Toyota’s final approval.

Toyota said the milestone also highlighted Argentina’s potential to strengthen its position as a strategic vehicle production and export platform for Latin America.

Initiatives such as RIGI contribute to “improving competitiveness, providing greater long-term predictability, and creating a favourable environment for investment”, it added.

The project is expected to sell $1.28bn annually abroad, representing nearly 70% of its production.

“More productive investment, more jobs, and more exports for Argentines,” Caputo said.

Toyota has manufactured vehicles at Zárate since 1997 and continues to work with employees, suppliers and other stakeholders across its value chain to improve the competitiveness and long-term sustainability of its Argentine operations.

The company said details regarding investment decision timelines and future production plans would be communicated in due course.

Earlier this month, Toyota Motor was reported to be planning the deployment of humanoid robots across its global manufacturing operations from 2028, including in work areas shared with humans.