Toyota and Tesla have decided to build their jointly-developed RAV4 electric SUV at Toyota’s manufacturing facility in Ontario, Canada.
As previously announced, Toyota will pay Tesla approximately $100 million to supply the electric powertrain, which includes the battery, motor, gear box and power electronics for the RAV4 EV.
Tesla will build the electric powertrains at its production facility in Palo Alto, California and then ship them to TMMC for final assembly into the vehicle.
The RAV4 EV will be sold at U.S. Toyota dealers through Toyota Motor Sales, U.S.A., Inc. Details including pricing, volume and regional distribution will be determined and announced at a later time.
In July of last year, Tesla and Toyota Engineering and Manufacturing, America (TEMA) collaborated to convert 32 conventional gas-engine RAV4 compact SUVs into fully functional RAV4 EV prototypes.
Ontario offers consumers who buy or lease electric vehicles between $5,000 and $8,500 in incentives, with the goal of having one out of 20 vehicles in the province electrically powered by 2020.
The Canadian and Ontario governments recently gave Toyota $141.6 million in grants and loans to upgrade its southern Ontario plants in Woodstock and nearby Cambridge, according to CBC News.