TOKYO (Reuters) - Japanese automaker Honda Motor will procure batteries for its hybrid vehicles from Toyota Motor's plant in the United States in an effort to reduce tariff risks under the Trump administration, the Nikkei newspaper reported on Monday.

Honda’s electrified vehicles, including EVs and hybrids, accounted for over a quarter of US sales last year. The company sold over 308,500 hybrids and 40,400 electric vehicles in the US in 2024. The batteries will likely be used in the CR-V and other Honda hybrid vehicles.

Toyota's new battery manufacturing facility in North Carolina spans over seven million square feet—equivalent to approximately 121 football fields.