Honda Considering Building $18.4 Billion EV Plant in Canada

Honda is reportedly considering investing $18.4 billion in an electric vehicle (EV) and battery plant in Canada. The move is part of Honda’s efforts to gain ground in the rapidly evolving EV market.

According to reports from Japanese news outlets, the automaker is considering the construction of both an electric vehicle and battery plant in Canada, with potential sites under evaluation, including the vicinity of its existing facility in Alliston, Ontario. A decision on this investment is anticipated by the end of the year, marking one of Honda’s largest ventures in the pursuit of catching up with U.S. and European competitors in the EV sector. (via Nikkei)

While Honda is in the process of retooling a production plant in Ohio for EV production in collaboration with LG Energy Solution, the Japanese company is contemplating going solo for the battery plant in Canada. Honda aims to capitalize on Canada’s lithium resources and develop battery technologies, including solid-state batteries, potentially in collaboration with existing partners.

The proposed EV plant would complement Honda’s existing plans for EV production in Ohio, scheduled to begin in 2026. The Canadian facility, if realized, would become Honda’s second EV plant in North America.

Canada’s growing reputation as a green supplier of choice and a global EV leader has attracted attention from automakers, with the government’s recently announced plan to end the sales of new gasoline or diesel-powered passenger vehicles by 2035. The country’s abundant renewable energy resources, coupled with a low carbon footprint, further contribute to its appeal for Honda.

The Canadian government has been actively supporting the EV sector, offering generous subsidies to attract major investments. Notably, Volkswagen and Northvolt are among the companies building battery plants in the country.

Honda’s potential investment aligns with its broader strategy to transition to electric mobility, targeting 40% of North American sales to be EVs by 2030 and 80% by 2035.

While the automaker is considering a plant in Canada, it recently abandoned plans with GM in the US to jointly-develop affordable EVs.

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