Honda Motor Co. Ltd. will be procuring batteries for its hybrid vehicles from Toyota Motor Co.'s factory in the United States, Nikkei reported on Monday.
According to the media outlet, batteries for 400,000 cars will be secured, which is enough for all the hybrid vehicles it sells in the country. The move comes as US President Donald Trump's trade policies are rocking the globe. Honda has been buying batteries from Japanese and Chinese manufacturers and then sending them to the US.
However, with new challenges arising due to tariffs, Honda and Toyota are collaborating to create new supply chains. The aforementioned batteries will be used in various models, including the CR-V and an SUV.
