The Japanese car company said Friday that the Georgetown plant will build about 50,000 of the vehicles each year, creating 750 new jobs.
The Georgetown plant currently assembles the Camry, Avalon and Venza models as well as their hybrid counterparts. The plant employs about 6,600 people.
Toyota said it will invest $360 million to build the Lexus assembly line, boosting Georgetown's annual vehicle production to 550,000 a year.
The Kentucky Economic Development Finance Authority approved $146.5 million in state tax incentives on Wednesday to help with the cost of the expansion.