According to media reports, Honda announced on April 25th that the company plans to invest 15 billion Canadian dollars (equivalent to $11 billion) to build a new electric vehicle and battery production plant in Ontario, Canada, based on its existing facilities. This is the largest investment Honda has ever made in Canada.
Honda stated that it expects to contribute 60% to 70% of the total investment, with the rest coming from joint venture partners and subsidies from the Ontario government. The office of Prime Minister Justin Trudeau indicated that the combined support from the federal government of Canada and the Ontario government could reach approximately 5 billion Canadian dollars. Details of the investment will be finalized later this year.
The investment announced jointly by Honda executives and Canadian Prime Minister Justin Trudeau signifies Honda's anticipation of increased demand for electric vehicles from consumers in North America.
Honda mentioned that the new electric vehicle and battery plant will be adjacent to its existing automotive and engine plants in Canada, with the total workforce expected to increase by about 1,000 people. The new facility is projected to commence operations in 2028, with an annual production capacity of up to 240,000 electric vehicles and 36 GWh of batteries.
Like other Japanese automakers, Honda entered the electric vehicle field relatively late and is now competing with rapidly growing Chinese competitors.
In Canada, Honda intends to establish a production system from materials to complete vehicles by producing key components for electric vehicles through joint ventures with companies such as Asahi Kasei.
Despite signs of a slowdown in global demand for electric vehicles, Honda executive Shinji Aoyama stated that the supply network will help Honda achieve its goal that by 2040, all vehicles the company sells in North America will be electric or fuel cell vehicles.
Against the backdrop of global efforts to reduce carbon emissions, Canada has invited various companies involved in the electric vehicle supply chain to strengthen the manufacturing capabilities in Ontario's industrial heartland.
Trudeau remarked, "Honda's investment is a vote of confidence in Canada, Canadian auto workers, and our manufacturing sector. Together, we are creating high-paying jobs, growing the economy, and keeping the air clean."
