Toyota said Wednesday it will build an EV plant in Shanghai, China. The plant will produce a new Lexus brand EV vehicle.

The plant, set to begin operations in 2027 or later, will focus on producing electric vehicles (EVs) and automotive batteries.

Toyota Motor (NYSE: TM) is set to establish a wholly owned company in Shanghai to develop and manufacture electric vehicles (EVs) and batteries for its Lexus brand, with production slated to begin in 2027.

Lexus has revealed pricing and performance specifications for the 2025 LX 700h. The $115,350 luxury SUV has a hybridized V6 with 457 hp and 583 lb-ft of torque. The LX 600 remains available, but a trimmed lineup has sent prices soaring.

The latest iteration of the LX arrived in the U.S. for the 2022 model year. The LX 600 grade features a twin-turbocharged 3.4-liter V-6, making 409 horsepower and 479 pound-feet of torque. A 10-speed automatic gearbox hooks up to a full-time four-wheel drive system.

“The LX 700h is about dual personality, highly capable on-road and off, and a nice, comfortable feel with massaging seats,” said Hollingsworth. “Then off-road you’re still going to have that comfortable ride. It’s one of few vehicles in the segment that can take you to that level off-road and still have the luxury.”