American Honda will procure batteries for its hybrid vehicles from Toyota Motor North America’s new $13.9 billion battery complex coming online in Liberty, N.C., Japan’s Nikkei news service reported March 17.
Nikkei said Honda will take in Toyota’s U.S.-made batteries for about 400,000 vehicles, which will be enough for all of its hybrid cars it sells in the U.S. starting in fiscal 2025, which begins in April.
A spokesman for Toyota Motor North America would not confirm the report, but told Automotive News: “We are constantly evaluating our competitiveness and making decisions to support our North American operations, helping to ensure our promise of long-term employment stability. We do not comment on single transactions and have nothing to announce at this time.”
The first production batteries from Toyota’s 1,800-acre, 30 gWh battery complex are expected to come off the first line this spring. The massive facility, which Automotive News toured a year ago, will ultimately produce two sizes of battery cells — cellphone-size for traditional hybrids, and VHS tape-size for plug-in hybrids.
The complex is expected to be complete by 2028 and employ an estimated 5,100 people. Seven buildings, all dedicated to making batteries, with two production lines planned for each: 10 lines will build battery packs for future EVs and plug-in hybrids; four will build battery packs for gasoline-electric hybrids.
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A Honda representative said the information was not released by the company, adding it does not disclose where it sources its parts for mass production.
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Honda currently sources batteries for the cars it assembles in the U.S. from Japan and China but is bracing for potential tariffs under President Donald Trump, Nikkei added.
The move to source batteries in the U.S. would mark Honda’s latest step to shield itself from a possible tariff war.
Honda decided to produce its next-generation Civic hybrid in Indiana instead of Mexico to avoid potential tariffs on one of its top-selling models, people familiar with its plans told Reuters this month.
Reuters contributed to this report.
