Honda Motor announced plans to invest $11 billion in Ontario, Canada, to establish a comprehensive electric vehicle (EV) value chain.
The new EV hub will be a pivotal point in Honda's strategy to prepare for the anticipated rise in demand for electric vehicles in the region.
The investment will amount to approximately CAD$15 billion (USD$11 billion), including contributions from joint venture partners.
Honda is Set to Establish a Comprehensive EV Value Chain in Ontario
Honda envisions building an innovative and environmentally responsible EV manufacturing plant and a standalone EV battery facility in Alliston, Ontario.
Additionally, the proposed EV value chain will include a cathode active material and precursor (CAM/pCAM) processing plant via a joint venture partnership with POSCO Future M Co., Ltd. and a separator plant through a joint venture partnership with Asahi Kasei Corporation.
Further details regarding these ventures will be revealed in due course, according to Honda.
The company anticipates commencing electric vehicle production by 2028. Once operational, the EV plant is projected to produce up to 240,000 EVs annually, while the EV battery plant is expected to have a capacity of 36 GWh annually.
This ambitious initiative is also anticipated to create employment opportunities. Honda estimates the addition of at least 1,000 new associates for the EV and EV battery manufacturing facilities, in addition to supporting the existing employment levels of 4,200 associates across its two current manufacturing sites in Ontario.
Honda is currently engaged in evaluating the scope of its investment and finalizing negotiations with joint venture partners. These discussions are expected to conclude within the next six months, after which more detailed plans will be shared.
Honda is also collaborating closely with the Canadian and Ontario governments to promote innovation in low-emissions manufacturing, leveraging federal Investment Tax Credits and provincial incentives to support the development of sustainable and technologically advanced manufacturing facilities.
This initiative aligns with Honda's commitment to achieving carbon neutrality across its products and corporate activities by 2050. To reach this goal, Honda aims to have battery electric vehicles (BEVs) and fuel cell electric vehicles (FCEVs) account for 100% of its vehicle sales by 2040.
Honda's Expansion in North America
In North America, Honda has designated its existing auto production plants in Ohio as its EV Hub, where significant investments are being made to retool existing facilities and construct a joint venture EV battery plant with LG Energy Solution.
This hub will serve as a foundational platform for EV and EV battery production, enabling the exchange of expertise with other Honda plants, along with the new EV assembly and battery plants in Ontario.
"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," Toshihiro Mibe, Global CEO of Honda, said in a press release.
"We will strengthen our EV supply system and capability with an eye toward a future increase in EV demand in North America."
