Honda Motor, in collaboration with undisclosed joint venture partners, has plans to invest $11 billion in Ontario, Canada, to establish a comprehensive electric vehicle (EV) value chain, the Japanese automaker revealed on Thursday.
The initiative aims to establish a new North American electric vehicle hub featuring assembly and battery plants alongside supporting facilities for the production of both all-electric and fuel-cell-powered vehicles.
Scheduled to commence vehicle production in 2028, the project anticipates an annual vehicle capacity of 240,000 units once fully operational.
Situated in Alliston, Ontario, the investment is poised to significantly contribute to Honda’s objective of offering exclusively all-electric and fuel cell-powered vehicles by 2040.
Despite industry skepticism regarding the timing of the investment, considering recent pullbacks in all-electric vehicle plans by several automakers due to slower-than-anticipated EV adoption, Honda clarified that the move is geared towards addressing future growth in EV demand in North America.
The battery plant, capable of producing 36 gigawatt hours per year, underscores the strategic focus on bolstering EV manufacturing capabilities.
Anticipated to generate at least 1,000 new jobs, in addition to the existing 4,200 employees across its two Ontario manufacturing facilities, the investment marks a significant milestone for Canada’s automotive industry.
Canadian Prime Minister Justin Trudeau hailed Honda’s $15 billion Canadian dollars investment as the largest in the country’s automotive sector, with the company expected to receive substantial assistance, including tax credits and incentives, from the Canadian government.
This landmark investment follows Honda’s confirmation last year of a $4.4 billion investment in a new U.S. battery plant in Ohio, showcasing the company’s commitment to advancing its EV supply chain capabilities across North America.
Honda’s CEO Toshihiro Mibe emphasized the strategic significance of the investment, stating,
“In North America, following the initiative to establish our EV production system capability in the U.S., we will now begin formal discussions toward the establishment of a comprehensive EV value chain here in Canada, with the support of the governments of Canada and Ontario.”
The company aims to finalize its plans over the next six months, as it evaluates the scope of investment and engages in negotiations with its joint venture partners.
