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 yr, Honda is planning to purchase sufficient batteries for roughly 400,000 automobiles, in line with the report. Honda offered 308,000 hybrids within the U.S. in 2024, accounting for 22% of its general 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 options to keep away from present and potential tariffs, the report mentioned. On Mar. 4 Trump imposed an extra 10% tariff on all Chinese language imports, on high of a ten% tariff imposed a month earlier. Trump can also be anticipated to boost 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 return on-line this yr. 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 might 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 yr. Honda has already seen hybrids develop to half the gross sales combine for some fashionable fashions just like the Accord sedan because it appears to probably outpace all however Tesla in U.S. EV manufacturing with a ramp-up scheduled to start later this yr 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 line with Nikkei. The automaker can also be seeking to additional enhance its hybrid tech, though their will probably be much less want for it within the U.S., within the close to time period at the very least, if Trump follows via on plans to decrease emissions requirements.
