Honda to Source Batteries from Toyota for U.S. Market Hybrids

Honda is planning to source batteries for its U.S.-market hybrids from Toyota to avoid tariffs proposed by the Trump administration, according to Green Car Reports.

As per a report from Nikkei Asia, Honda will be purchasing batteries for approximately 400,000 vehicles. Having sold 308,000 hybrids in the U.S. last year, it should be enough to cover the automaker’s needs. The batteries would be produced at Toyota’s new plant in North Carolina.

Currently, Honda sources its hybrid batteries from China and Japan—but this could be impacted by recently proposed tariffs.

Donald Trump has said there will be an additional 10% tariff on Chinese imports, following an initial 10% tariff announced a month prior. It’s also estimated that the White House will be raising tariffs on Japanese auto imports from 2.5% to 25%.