Honda Motor is planning to invest $11 billion in Ontario, Canada, to build a comprehensive electric vehicle (EV) value chain.
The Japanese automaker said Thursday that the planned North American EV hub will include new assembly and battery plants and other facilities to support the production of electric and fuel cell-powered vehicles.
Honda Planned EV Value Chain in Canada
In a press release, the prime minister's office highlighted Honda's ambitious plans for this project, which will see four new manufacturing plants in Ontario.
Honda said it intends to build a robust EV supply system and enhance its capability to meet the anticipated surge in EV demand across North America. This initiative includes evaluating the construction of an innovative Honda EV plant and a standalone Honda EV battery plant in Alliston, Ontario.
Honda also plans to establish a cathode active material and precursor processing plant through a joint venture with POSCO Future M Co., Ltd. and a separator plant through a collaboration with Asahi Kasei Corporation, with further details to be disclosed in their respective Ontario communities.
Expansion of Honda in North America
Honda said vehicle production will commence in 2028. Once the assembly plant is fully operational, its annual vehicle capacity is expected to reach 240,000 units, while the battery plant could produce 36 gigawatt hours (GWh) per year.
Honda also expects this project to generate at least 1,000 new jobs, adding to the 4,200 employees currently working at the company's two existing manufacturing facilities 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 statement.
"We will strengthen our EV supply system and capability with an eye toward a future increase in EV demand in North America," he added.
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