Toyota will supply batteries for 400,000 Honda hybrids in the US
Toyota is launching a new battery plant in North Carolina at a cost of nearly $14 billion and has already found its first major customer. According to Nikkei, the company will supply batteries for about 400,000 Honda hybrid vehicles sold in the US starting in fiscal 2025.
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Honda currently sources batteries for cars sold in the U.S. from China and Japan, but new customs restrictions are forcing manufacturers to look for local alternatives. Earlier this month, additional 10 per cent duties on imports from China went into effect. And that's on top of the 10 per cent imposed in February.
Honda's electrified vehicles, including electric cars and hybrids, accounted for more than a quarter of U.S. sales in 2024. The company sold more than 308,500 hybrids and 40,400 electric vehicles. Toyota batteries will likely be used in the CR-V crossovers and other popular Honda models.
Toyota Battery Manufacturing North Carolina (TBMC)
TBMC visualisation. Illustration: Toyota
TBMC is Toyota's first in-house battery manufacturing plant outside of Japan. Bringing in Honda as a buyer will help Toyota cut costs as it ramps up battery production for the company's own needs. Toyota itself plans to increase sales of electrified vehicles (EVs, HEVs and PHEVs) in North America from 40 per cent last year to 80 per cent by 2030.
Source: Nikkei
