The plant is expected to bring 4,000 jobs with it.
North Carolina is now the only state in the southeast without a plant.
Rochelle City leaders say they are unsure when they will hear back about whether or not they are chosen as a location for the plant.
Other states on the short list, according to The Wall Street Journal, are: Alabama, Florida, Kentucky, Illinois, Indiana, Iowa, Michigan, Mississippi, North Carolina and Texas.
"We've spent, in Rochelle and the area, nearly 40 million dollars to get ready for projects like this", says Rochelle Economic Development Director, Jason Anderson.
Toyota said the delay was necessary to adjust its supply chain in Mexico to produce the Tacoma pickup instead of the Corolla compact vehicle. Toyota plans to build its Corolla compact auto for the North American market while Mazda would use the plant to build crossover vehicles that combine features of passenger cars and sport-utility vehicles. Few further details were available.
Toyota has said that together with Mazda, U.S. vehicles will be produced under the same roof, where they will benefit from shared technology for electric vehicles. "These technologies will allow the companies to respond quickly to regulations and market trends in each country". "It is also the realization of our desire to never let cars become commodities".