Honda plans CAD15B EV value chain in Canada

In a major step toward enhancing its electric vehicle (EV) capabilities, Japanese automaker Honda Motor Co. Ltd. has announced plans to invest approximately CAD15 billion (USD10.9 billion), including contributions from joint venture partners, to develop a full-scale EV value chain in Ontario, Canada. This strategic initiative follows Honda’s creation of an EV hub in the U.S. state of Ohio and is aimed at preparing for an anticipated surge in EV demand in North America.

Set to commence operations in 2028, the new project will feature a Honda EV plant and a standalone EV battery plant in Alliston, Ontario. These facilities are expected to dramatically enhance Honda’s production capabilities, with the EV plant projected to produce 240,000 vehicles annually and the battery plant to generate 36 gigawatt-hours (GWh) per year.

This expansion not only secures the existing 4,200 jobs at Honda’s Ontario facilities but is also anticipated to create at least 1,000 new positions. Moreover, the venture promises to stimulate further employment across various sectors, including construction.

In collaboration with POSCO Future M Co. Ltd., Honda will establish a cathode active material and precursor processing plant. Another joint venture with Asahi Kasei Corporation will set up a separator plant, with further details on their locations in Ontario to be announced.

The project underscores Honda’s commitment to achieving carbon neutrality for all its products and corporate activities by 2050, with a target for battery-electric vehicles (BEVs) and fuel cell electric vehicles (FCEVs) to constitute 100% of its vehicle sales by 2040.

Honda’s efforts are supported by performance-based initiatives from the Canadian and Ontario governments, including new investment tax credits and other incentives. This comprehensive strategy not only aligns with global environmental objectives but also positions Honda as a leader in sustainable automotive solutions.