Honda is seeking to supply batteries from Toyota for U.S.-market hybrids amid persevering with uncertainty over the Trump Administration’s tariffs, Nikkei Asia reported Monday.
Beginning this fiscal 12 months, Honda is planning to purchase sufficient batteries for roughly 400,000 automobiles, in response to the report. Honda offered 308,000 hybrids within the U.S. in 2024, accounting for 22% of its total gross sales, so this could successfully cowl all of its hybrid-battery wants for this market, Nikkei famous.
2025 Honda CR-V
Honda has been sourcing batteries for its hybrid fashions from Japan and China, however is on the lookout for alternate options to keep away from present and potential tariffs, the report mentioned. On Mar. 4 Trump imposed a further 10% tariff on all Chinese language imports, on prime of a ten% tariff imposed a month earlier. Trump can also be anticipated to lift tariffs on Japanese auto imports from 2.5% to 25%.
Batteries for Honda hybrids might be produced at Toyota’s new plant in North Carolina, introduced in 2021, that is scheduled to come back on-line this 12 months. In 2022, nonetheless throughout early days of labor on the manufacturing facility, Toyota introduced a $2.5 billion growth so as to add EV battery manufacturing capability. In February the automaker additionally indicated it will shift a $1.5 billion battery order to an LG plant in Michigan to maintain it afloat after Common Motors backed out of an funding within the plant.
2025 Honda Accord
Hybrids will doubtless do the heavy lifting in getting Toyota to its purpose of getting “electrified” automobiles—together with EVs, hybrids, plug-in hybrids, and hydrogen fuel-cell automobiles—account for greater than 50% of its U.S. gross sales this 12 months. Honda has already seen hybrids develop to half the gross sales combine for some fashionable fashions just like the Accord sedan because it seems to be to doubtlessly outpace all however Tesla in U.S. EV manufacturing with a ramp-up scheduled to start later this 12 months at its Ohio manufacturing hub.
Honda is seeking to shift much more manufacturing to the U.S., in addition to rejigger provide chains, to keep away from 25% reciprocal tariffs on Mexican and Canadian items, which it estimates may value round $4.7 billion yearly, in response to Nikkei. The automaker can also be seeking to additional enhance its hybrid tech, though their shall be much less want for it within the U.S., within the close to time period at the very least, if Trump follows by way of on plans to decrease emissions requirements.