Honda Motor and its joint venture partners are planning to invest $11 billion in Ontario, Canada to create an electric vehicle (EV) manufacturing hub. This project will include new assembly and battery plants, as well as other facilities to support the production of all-electric and fuel cell-powered vehicles. The investment is part of Honda’s goal to offer exclusively all-electric and fuel cell-powered vehicles by 2040, with production expected to begin in 2028 and an annual capacity of 240,000 units once fully operational.
The timing of this investment may seem surprising, as many automakers have recently announced pullbacks in their all-electric vehicle plans due to slow adoption rates. However, Honda stated that the investment is in anticipation of a future increase in EV demand in North America. The battery plant in Ontario will be capable of producing 36 gigawatt hours per year, and the project is expected to create at least 1,000 new jobs, adding to the 4,200 employees currently working at Honda’s existing manufacturing facilities in the region.
Canadian Prime Minister Justin Trudeau lauded the investment, calling it the largest ever for the country’s automotive industry. Honda is expected to receive around 2.5 billion Canadian dollars in assistance in tax credits and other incentives from the Canadian government. This investment comes after Honda’s confirmation last year of a $4.4 billion investment for a new battery plant in Ohio, signaling the company’s commitment to expanding its EV production capabilities in North America.
Honda CEO Toshihiro Mibe expressed the company’s plans to establish a comprehensive EV value chain in Canada, with the support of the Canadian and Ontario governments. The company is currently in discussions with its joint venture partners, including LG Energy Solution, on the details of the investment. Over the next six months, Honda expects to finalize the plans for the project, further solidifying its commitment to expanding its EV production capabilities in the region.
Overall, this investment is seen as a major win for Canada’s automotive industry and economy, with the potential to create significant job opportunities and bolster the country’s position in the growing EV market. Honda’s commitment to transitioning to all-electric and fuel cell-powered vehicles by 2040 aligns with the global trend towards sustainable transportation and reduces the company’s carbon footprint. The establishment of a comprehensive EV value chain in Canada further cements Honda’s position as a key player in the evolving automotive industry.
