Honda Motor, along with unidentified joint venture partners, recently announced their plan to invest $11 billion in Ontario, Canada, to establish an “comprehensive EV value chain.”
The investment will focus on setting up new assembly and battery plants, as well as other necessary facilities to support the production of all-electric and fuel cell-powered vehicles. The North American electric vehicle epicenter is set to commence vehicle production in 2028, with an annual capacity of producing 240,000 units once fully operational. This investment aligns with Honda’s objective of offering exclusively all-electric and fuel cell-powered vehicles by 2040.
Despite the slow adoption of electric vehicles in the industry, Honda stated that the $11 billion investment is aimed at anticipating the future increase in EV demand in North America. The battery plant associated with this project is projected to have the capacity to produce 36 gigawatt hours per year. This significant investment is expected to create around 1,000 new jobs, supplementing the existing 4,200 employees at Honda’s manufacturing facilities in Ontario.
Canadian Prime Minister Justin Trudeau expressed his support for Honda’s investment, stating that the $15 billion investment is the largest ever for Canada’s automotive sector. The Canadian government is expected to provide approximately CA$2.5 billion in tax credits and other incentives to facilitate the project. This investment comes on the heels of Honda’s previous announcement of a $4.4 billion investment in a new U.S. battery plant in Ohio.
Honda’s CEO, Toshihiro Mibe, emphasized the company’s commitment to strengthening its EV supply system and capability to meet the rising demand for electric vehicles in North America. The automaker has initiated discussions with its joint venture partners to finalize the plans over the next six months. Honda’s partner for the U.S. facility, LG Energy Solution, will also play a crucial role in this venture.
Honda’s substantial investment in Canada for electric vehicle production underscores the company’s strategic shift towards sustainable mobility solutions. Despite the challenges in the EV market, Honda remains steadfast in its commitment to creating a comprehensive EV value chain in North America. The collaboration with joint venture partners and government support signifies a significant milestone for the automotive industry in Canada.