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Honda announces CAD$15 billion investment in electric vehicle value chain in Canada

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Honda Motor Co., Ltd. has announced plans to develop a comprehensive electric vehicle (EV) value chain in Canada with an investment estimated at approximately CAD$15 billion (USD$11 billion). This initiative includes contributions from joint venture partners and aims to strengthen Honda’s EV supply system in response to growing EV demand in North America. The company is currently assessing the feasibility of establishing a new Honda EV manufacturing plant and a dedicated Honda EV battery facility in Alliston, Ontario.

The proposed EV value chain will involve additional facilities, including a cathode active material and precursor (CAM/pCAM) processing plant in collaboration with POSCO Future M Co., Ltd., and a separator plant in partnership with Asahi Kasei Corporation. Details about these ventures will be announced in the respective Ontario communities.

Production at the new facilities is expected to start in 2028. The planned EV plant is projected to have an annual production capacity of 240,000 EV units, while the battery plant is anticipated to produce 36 GWh of batteries per year. This development is expected to preserve the current workforce of 4,200 at Honda’s existing Ontario sites and create at least 1,000 new jobs at the new plants. Additionally, the project is likely to generate substantial secondary employment, especially in construction.

Honda is in the process of finalizing investment details and joint venture agreements, with further information expected within the next six months. The company is collaborating with Canadian and Ontario governments to utilize federal and provincial incentives for low-emission manufacturing technologies.

In alignment with its global goal of achieving carbon neutrality by 2050, Honda plans for battery electric vehicles (BEVs) and fuel cell electric vehicles (FCEVs) to represent 100% of its vehicle sales by 2040. This initiative starts with converting its Ohio plants into an EV production hub and includes the establishment of the EV value chain in Canada. These efforts are part of Honda’s strategy to improve the cost competitiveness of its EVs through efficient production and resource management, contributing to a carbon-neutral future.

  • Chad Kirchner

    Chad is the Editor-in-Chief and founder of Destination Charged. He has nearly 15 years of experience in the automotive industry, working for a variety of publications in both print and online. He was also the co-founder of EV Pulse, another site devoted to electrification in automotive.

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