DEROIT — Honda Motor and yet-to-be-named joint venture partners plan to invest $11 billion in Ontario, Canada, to create a “comprehensive EV value chain,” the Japanese automaker announced Thursday.
The company said the new North American electric vehicle epicenter will include new assembly and battery plants as well as other facilities to support production of all-electric and fuel cell-powered vehicles.
Honda said vehicle production will begin in 2028, with annual vehicle capacity of 240,000 units once it is fully operational.
The investment in Alliston, Ontario, is expected to greatly assist in Honda’s goal of exclusively offering all-electric and fuel cell-powered vehicles by 2040.
Prime Minister of Canada Justin Trudeau said during a livestreamed press conference on Thursday that Honda’s investment, 15 billion Canadian dollars, is the largest ever for the country’s automotive industry.
The investment is a major win for Canada and comes after Honda last year confirmed a $4.4 billion investment for a new U.S. battery plant in Ohio.
“We will strengthen our EV supply system and capability with an eye toward a future increase in EV demand in North America.”
Honda said it has “begun the process of evaluating the scope of its investment and completing negotiations with its joint venture partners.”
DEROIT—On Thursday, Honda Motor announced that it and its unidentified joint venture partners intend to invest $11 billion in Ontario, Canada, in order to establish a “comprehensive EV value chain.”.
According to the company, new assembly and battery plants, along with other facilities to support the production of fuel cell and all-electric vehicles, will be part of the new epicenter for electric vehicles in North America.
Honda announced that car production will start in 2028 and reach a capacity of 240,000 units annually once it is fully operational. The Alliston, Ontario, investment is anticipated to have a significant positive impact on Honda’s objective of providing only fuel cell and all-electric vehicles by 2040.
Although many automakers have announced plans to scale back their all-electric vehicle lineups in response to the unexpectedly slow adoption of EVs, investors and industry observers may find the timing of the investment peculiar.
With a battery plant capable of producing 36 gigawatt hours, or GWh, annually, Honda stated that the investment is “for a future increase in EV demand in North America.”.
The company currently employs 4,200 people at its two existing manufacturing facilities in Ontario; the project is expected to add at least 1,000 new jobs to that number.
During a livestreamed press conference on Thursday, Canadian Prime Minister Justin Trudeau declared that Honda’s 15 billion Canadian dollar investment is the largest ever for the nation’s automotive sector. The Canadian government is anticipated to provide the company with tax credits and other incentives worth up to CA$20.5 billion, according to officials.
Commencing this year, Honda announced a $4.44 billion investment for a new U.S. vehicle, marking a significant victory for Canada. S. Ohio battery plant.
“After the initiative to establish our EV production system capability in the U.S., North America. s. Honda CEO Toshihiro Mibe stated in a release that “with the support of the governments of Canada and Ontario, we will now begin formal discussions toward the establishment of a comprehensive EV value chain here in Canada.”. “With an eye toward a future rise in EV demand in North America, we will fortify our EV supply system and capability.”. “.
According to Honda, the company has “started the process of assessing the size of its investment and concluding talks with its joint venture partners.”. Its associate in the U.S. S. The building is called LG Energy Solution.
During the next six months, the company stated, it hopes to finalize the plans.
