Honda May Have Deal to Source Hybrid Batteries From Rival Toyota
Toyota, which is investing nearly $14 billion USD in a battery plant in North Carolina, has reportedly reached an agreement with rival Honda to supply batteries for its hybrid vehicles. Japan’s Nikkei first reported the news on Monday.
The deal would be effective from fiscal year 2025, which begins on April 1, and would provide power for all Honda hybrids sold in the U.S., representing around 400,000 vehicles.
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Neither Toyota nor Honda have any official announcements to make at this time. The decision is directly and largely attributable to the new tariffs imposed by U.S. President Donald Trump's administration, according to Nikkei.
Honda currently uses batteries manufactured in Japan and China. The automaker is finalizing a huge “EV Hub” for the production of electric and hybrid vehicles in Ohio, and has committed to investing $15 billion CAD in four new EV and battery plants in Ontario, scheduled to start producing vehicles in 2028. Let's not forget the $1.38 billion CAD over six years to manufacture hybrid models, again in Ontario. Trump's tariffs on Canadian imports could change all that, however.
Toyota’s new battery plant down in North Carolina, which is projected to have an annual capacity of 30 gWh, will produce batteries for hybrids, plug-in hybrids and all-electric vehicles. The first units are expected to come out this spring, although the site won’t be complete and fully operational before 2028.