Honda Will Purchase US-Made Toyota Batteries

Honda is opening a new chapter by sourcing batteries from Toyota’s new battery plant in the United States, to reduce tariff risks under the Trump administration, Japan’s Nikkei reported on Monday.

Starting in fiscal 2025, the publication said that Japan’s second-largest automaker will source batteries from Toyota, made in the United States, for about 400,000 vehicles, enough for all the hybrid cars it sells in the country.

A Honda spokesman said the company had not released the information, adding that it did not want to disclose where parts for mass production were sourced. Toyota declined to comment.

Honda currently sources batteries for cars it assembles in the US from Japan and China, but is bracing for a potential hit from Trump’s tariffs, Nikkei added.

Switching to batteries made in America would mark Honda’s latest step to protect itself from a potential tariff war.

People familiar with the plans said the Japanese automaker has decided to build its next-generation Civic hybrid in the US state of Indiana instead of Mexico to avoid potential tariffs on one of its best-selling models.

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