Honda Motor Co. announces a transformative CAD $15 billion investment in Ontario, Canada, to establish a comprehensive electric vehicle (EV) supply chain, including new manufacturing facilities and partnerships.
EV Manufacturing Expansion
Honda is set to significantly bolster its North American EV production capabilities with a substantial CAD $15 billion investment in Alliston, Ontario. This strategic move includes the construction of two pivotal facilities: an EV factory slated to start operations in 2028 with an annual output of 240,000 vehicles, and a battery plant with a 36 gigawatt-hour yearly capacity.
Collaborative Infrastructure Development
The investment extends beyond manufacturing, encompassing a full-scale upgrade of the EV supply chain infrastructure. Honda’s vision for the Canadian EV hub encompasses the entire manufacturing process, from raw material procurement to final assembly. Key components of this initiative are a cathode active material and precursor processing plant, and a separator plant, both stemming from joint ventures with industry partners.
Financial Planning and Government Collaboration
Honda is currently fine-tuning the financial details of this ambitious project, including finalizing negotiations with joint venture partners. The company is also engaging with Canadian and Ontario governments to leverage new investment tax credits and local incentives to support the venture.
Shift in Strategic Partnerships
Previously, Honda had plans to collaborate with General Motors to produce affordable EVs for North America. However, due to market uncertainties, those plans were shelved. Honda is now independently pursuing its goal to mass-produce EVs in North America, aligning with its target for zero-emission vehicles to represent all its sales by 2040.
A Milestone for Canadian Auto Industry
Jean Marc Leclerc, CEO of Honda Canada, highlighted the investment as a historic milestone for the Canadian automotive sector. Honda’s commitment to Canada is deep-rooted, with over CAD $6.5 billion invested in its Canadian operations to date and an annual procurement of over CAD $3 billion in goods and services from the Canadian supply network. This latest investment marks Honda’s largest in Canada, signifying a major leap towards an electrified automotive future.
