* Investment could reach up to C$506 mln
* Canada, Ontario each give C$70.84 mln in loans
* First electric Toyota vehicle produced outside Japan
TORONTO, Aug 5 Toyota Motor Co (7203.T) plans to invest up to C$506 million ($516 million) to produce an electric version of its RAV4 SUV in Woodstock, Ontario, its first electric vehicle to be produced outside Japan.
The governments of Canada and Ontario will each contribute up to C$70.84 million in repayable loans toward the venture, which is a joint project with Tesla Motors Inc (TSLA.O).
The compact crossover vehicles will be built on the same line as the gasoline-powered RAV4 at the Woodstock plant, about 135 km (84 miles) from Toronto.
Toyota will pay Tesla around $100 million to supply the electric powertrain, which includes the battery, motor, gear box and power electronics for the RAV4 EV.
The electric powertrains will be built at Tesla's production facility in Palo Alto, California and then shipped to Woodstock for final assembly into the vehicle.
Toyota said details on U.S. pricing and distribution of the electric RAV4 would be announced later. A decision about sales in Canada has not yet been made. ($1=$0.98 Canadian) (Reporting by John McCrank; editing by Janet Guttsman)