Honda could buy batteries from US Toyota production
The possibility was first reported by the Japanese business portal Nikkei. According to the article, Honda could team up with Toyota, getting batteries for its hybrid vehicles from the latter’s battery plant in North Carolina.
The Japanese carmaker has invested about 14 billion dollars in the factory, which should open its doors in April. The plant has four production lines to manufacture batteries for hybrid cars. In late 2023, Toyota announced that it would add eight additional production lines for BEV and PHEV batteries.
As per the report, Honda will likely use the batteries procured from Toyota for its CR-V, an SUV available in the US as a full hybrid and (at least in California) as a hydrogen-powered electric drive. Nikkei mentions that the batteries could also be used “in other models,” but does not give any further names.
The Donald Trump administration started imposing additional tariffs on imports from China at the beginning of March. The US president could also raise import duties on automotive imports from Japan, making Hondas in the US notably more expensive. According to the article, “Honda estimates that 25% reciprocal tariffs on Mexican and Canadian goods could cost the company around $4.7 billion annually.” That is why it is looking to shift production (and its supply chain) to the US.
Moreover, hybrids are in high demand in the US. Honda sold more than 300,000 HV there last year, accounting for 22 per cent of its overall sales in the country.
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