Toyota is now a battery provider? That’s the plan. Honda will use Toyota’s batteries to energy up its round 400,000 hybrids bought within the US.
Toyota will provide batteries for Honda hybrids within the US
Toyota’s $14 billion battery plant in North Carolina is prepared for enterprise. The ability will start transport out batteries subsequent month, and it seems to be like Toyota already has its first buyer.
Based on a brand new Nikkei report, beginning in fiscal 2025, Toyota will provide batteries for the roughly 400,000 Honda hybrids bought within the US.
Honda presently makes use of batteries from China and Japan for automobiles bought within the US, however the firm is (like most) getting ready for modifications underneath Trump.
Honda’s electrified automobiles, together with EVs and hybrids, accounted for over 1 / 4 of US gross sales final yr. The corporate bought over 308,500 hybrids and 40,400 electrical automobiles within the US in 2024. The batteries will possible be used within the CR-V and different Honda hybrid automobiles.
Earlier this month, an additional 10% tariff on imports from China took impact. And that’s on prime of the ten% imposed in February.
With extra anticipated, together with a 25% enhance in automobiles imported from Japan, automakers are tightening up their provide chains.
A 25% tariff on Japanese automobiles, up from 2.5% presently, is estimated to value the six main Japanese automakers about $20 billion within the US.
Tariffs on imports from Mexico and Canada may value Honda roughly $4.7 billion alone. Teaming up with Toyota to make use of its batteries for its hybrids is a part of Japan’s broader world plans to ween off dependence on China and others for batteries and different rising tech.
The brand new US plant, Toyota Battery Manufacturing North Carolina (TBMC), is over seven million sq. ft, or in regards to the measurement of 121 soccer fields.
As Toyota’s first in-house battery manufacturing unit exterior of Japan, the plant might be a sport changer as Trump’s tariffs take impact. Securing Honda as a purchaser will already assist Toyota lower prices because it ramps up output.
Toyota plans to ramp up electrified automobile (EV, PHEV, and hybrid) gross sales in North America from round 40% final yr to 80% by 2030.
Electrek’s Take
Trump’s tariffs are already inflicting havoc, with almost each automaker warning that they put the US additional behind. Abroad automakers aren’t the one ones feeling the warmth, both.
The “Large Three,” GM, Ford, and Jeep maker Stellantis all construct automobiles in Canada and Mexico. GM lower output at its plant in Mexico in January, the place the electrical Chevy Equinox, Blazer, and Honda Prologue are made. Stellantis halted operations at its Brampton Meeting Plant in Canada final month, the place it was anticipated to launch the Jeep Compass EV manufacturing. What’s subsequent?
For Toyota, it seems to be like its $14 billion guess to construct batteries within the US is already paying off. Now, we simply want it to introduce extra EVs.
After unveiling three new electrical SUVs in Europe final week, together with the up to date bZ4X, Toyota hinted extra is on the best way for the US. Examine again quickly for updates.
What do you suppose? Do you wish to see extra Toyota EVs within the US, like the brand new C-HR+? Tell us your ideas within the feedback.
