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Honda Motor Co., Ltd. has unveiled plans to develop a comprehensive electric vehicle (EV) value chain in Ontario, Canada, with an investment estimated at CAD$15 billion (USD$11 billion), including contributions from joint venture partners. This strategic move is aimed at enhancing the company’s EV supply system and increasing its production capabilities in response to the anticipated rise in EV demand across North America.
Key Highlights
- Investment: Approximately CAD$15 billion to be invested in Canadian EV infrastructure.
- Production Capacity: New EV plant to produce 240,000 vehicles annually by 2028.
- Job Creation: Over 1,000 new jobs expected, bolstering the current workforce of 4,200.
- Partnerships: Collaboration with POSCO Future M Co., Ltd. and Asahi Kasei Corporation for critical materials and components.
- Environmental Impact: Initiative aligns with Honda’s goal for carbon neutrality by 2050.
The forthcoming facilities include a state-of-the-art Honda EV plant and a separate EV battery production plant located in Alliston, Ontario. These plants are part of Honda’s broader initiative to make battery electric vehicles (BEVs) and fuel cell electric vehicles (FCEVs) represent 100% of its vehicle sales by 2040. Additionally, the construction will feature a cathode active material and precursor (CAM/pCAM) processing plant and a separator plant, crucial for battery production, to be announced in their respective communities in Ontario.
Production is slated to commence in 2028, and once operational, the EV battery plant will boast a significant capacity of 36 GWh per year. This expansion not only secures the existing 4,200 jobs at Honda’s current manufacturing facilities in Ontario but is also projected to create at least 1,000 new positions.
In its ongoing efforts to support low-emissions manufacturing, Honda is working closely with the governments of Canada and Ontario, utilizing new Investment Tax Credits and provincial incentives aimed at fostering innovation in environmentally friendly technologies.
This initiative builds upon Honda’s establishment of an EV Hub in Ohio, USA, which forms the foundation for future North American EV and EV battery production. The knowledge and expertise gained from the Ohio hub will be instrumental in enhancing the operational efficiency of the new Canadian facilities.
Honda’s North American EV Strategy emphasizes its commitment to achieving carbon neutrality for all its products and corporate activities by 2050. The company’s efforts to integrate all aspects of EV production—from raw material procurement to finished vehicle assembly—underscore its dedication to sustainable development and competitive positioning in the global EV market.
For further updates on this project, including detailed plans and environmental impact assessments, please visit www.hondanews.ca.
Quotes from Leadership: Toshihiro Mibe, Global CEO of Honda, stated, “Honda is making progress in our global initiatives toward the realization of our 2050 carbon neutrality goal. 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.”
Jean Marc Leclerc, President and CEO of Honda Canada Inc., remarked, “Honda of Canada Manufacturing is one of the premier automotive manufacturing facilities in the world and for nearly forty years, our work has been guided by determination, innovation, and a relentless drive to evolve. Today’s announcement is a historic investment by a manufacturer in the Canadian auto industry. It proudly honors the highly skilled associates who have earned a global reputation for manufacturing excellence and represents Honda’s recognition of the long-term attractiveness of the Canadian electric vehicle manufacturing ecosystem.”
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