Toyota has the most name recognition in the hybrid vehicle market with its category leading Prius family. Tesla is one of the biggest names in fully electric vehicles with its Tesla Roadster and the new Model S that is currently in beta testing. 

Tesla and Toyota announced last year that the pair would team up to build an electric only version of the RAV4 SUV. However, Toyota last week revealed that the RAV4 EV would now be built at the Toyota plant in Woodstock, Ontario where the gasoline version of the RAV4 is constructed rather than the previously announced Tesla plant.

Toyota says that this will streamline and simplify the build process for the vehicles.

“The Tesla-Toyota joint development team has agreed that building the vehicle at the Woodstock plant on the same line as the gasoline-powered RAV4, will streamline and simplify the production process and guarantee the highest level of quality control,” said Ray Tanguay, TMMC Chairman, who hosted Canadian officials at the plant today and thanked them for their support. “This is a great example of Toyota’s determination to collaborate with companies with leading edge technology.”

When the deal for Tesla to build the RAV4 EV was first announced late last year the EV RAV4 was to be built completely at the Tesla NUMMI plant. Toyota will still pay Tesla about $100 million to build the electric powertrain at its California facility and then ship them to the Toyota Ontario plant for construction. The construction of the EV will start next year.

With the new deal, Toyota will be responsible for the final construction and integration of the EV powertrain into the SUV. The RAV4 EV will be sold in the U.S. through Toyota dealers with pricing and availability to be announced at a later date.