Toyota’s hybrid battery module.
Japanese automaker Honda Motor Firm has agreed to buy batteries to energy its hybrid-electric automobiles made within the US from rival automaker Toyota Motor Company, in keeping with stories in Japan this week citing sources near the corporate.
Based on the stories, Honda is seeking to supply batteries produced at Toyota’s manufacturing unit in North Carolina from the 2025 fiscal yr, which begins subsequent month. The plant is anticipated to start out shipments to Honda in April.
To date Honda has sourced batteries for its US-made electrified automobiles from producers positioned exterior the US, primarily from Japan. However the Japanese automaker is seeking to improve native sourcing within the US, with the brand new US authorities underneath President Donald Trump threatening to impose import tariffs of 25% on its foremost buying and selling companions.
The deal, if confirmed, can be a uncommon instance of collaboration between the 2 automakers and would additionally assist Toyota improve output and capability utilization at its US battery plant.
Honda offered round 310,000 hybrid-electric automobiles within the US in 2024, accounting for greater than 20% of its whole gross sales in that market. The corporate stated it goals to double world hybrid car gross sales, excluding China, to 1.3 million items by 2030.
