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Honda to Build $11bn Electric Vehicle and Battery Plants in Canada

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Honda EV

Honda Motor has announced plans to invest C$15 billion ($11 billion) in new electric vehicle (EV) and battery production plants in Ontario. This would be its largest-ever investment in Canada.

The investment was announced by company executives and Canadian Prime Minister Justin Trudeau on Thursday.

According to company executives, Honda is positioned to compete effectively with emerging Chinese rivals.

The investment will enable Honda to produce essential EV components through joint ventures with companies such as Asahi Kasei.

Honda will work with South Korean steel giant POSCO (005490.KS) to open a new tab for producing battery cathode materials and Asahi Kasei to make separators. The automaker will establish a production system for materials and finished vehicles.

The new EV and battery plants, scheduled to commence operations by 2028, will have an annual production capacity of up to 240,000 EVs and 36 gigawatt-hours for batteries. This move aligns with Honda’s goal for all its North American sales to consist of EVs or fuel cell vehicles by 2040.

Honda’s investment plan is expected to create approximately 1,000 new jobs in Ontario, bolstering the region’s manufacturing sector and contributing to economic growth.

“The EV and battery plants will be constructed adjacent to existing four-wheeled vehicle and engine plants and the total workforce will increase by around 1,000 people from 4,200 now”, Honda said.

The Canadian and Ontario governments have pledged support for the project, which may total around C$5 billion in subsidies and incentives. The Japanese automaker expects to finalise its recent plans over six months.

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