Argentina's Economy Minister Luis Caputo said on Wednesday that Toyota Motor will invest $1.34 billion to build a plant in Argentina that will produce fully electric vehicles.

Caputo noted that this is the largest single investment ever made in the country's automotive industry.

Caputo said the project, located in Zarate in Buenos Aires Province, has been approved by the government committee responsible for evaluating applications under Argentina's RIGI incentive program for large investments.

He said the plant will generate $1.28 billion in annual exports, with roughly 70% of its output destined for overseas markets.

He noted that the project will create more than 3,600 jobs during construction and more than 2,600 direct and indirect jobs once production begins.

The move will expand Toyota's manufacturing footprint in Argentina; the Japanese automaker has operated a plant in Zarate since 1997.

Toyota said the facility currently produces the Hilux pickup and the SW4 SUV, and began producing the Hiace van in 2024.