Honda Makes Historic $11 Billion Investment in Canada’s Auto Industry
Japanese automaker Honda is set to make the largest investment ever in Canada’s auto industry, with plans to establish a comprehensive electric vehicle (EV) supply chain in the province of Ontario. This move marks the second stage in Honda’s North American EV expansion, with an investment of CA$15 billion (approximately US$11 billion).
Building EVs in Ontario
Honda will build an EV plant and a standalone battery plant near its existing manufacturing facility in Alliston, Ontario, positioning itself to produce 240,000 EVs annually starting in 2028. The battery plant will have an annual capacity of 36 GWh, supporting Honda’s goal of transitioning to electric vehicles.
Expanding the EV Supply Chain
In addition to the EV and battery plants, Honda plans to establish a cathode active material and precursor processing plant, as well as a separator plant in collaboration with partners POSCO Future M Co., Ltd. and Asahi Kasei. These facilities will further strengthen Honda’s EV supply chain capabilities.
Government Support and Industry Impact
Canadian Prime Minister Justin Trudeau hailed Honda’s investment as the largest in Canada’s auto industry history, emphasizing the creation of Canada’s first comprehensive electric vehicle supply chain. This move is expected to have a significant impact on the local economy and automotive sector.
Long-Term Sustainability Goals
Honda’s investments in Canada are part of its long-term sustainability goals, aiming for electric vehicles and hydrogen fuel cell electric vehicles to constitute 100 percent of its sales by 2040. By 2050, Honda aims to achieve carbon neutrality across all its business operations.
CEO Statement
Honda’s CEO, Toshihiro Mibe, expressed the company’s commitment to establishing a robust EV value chain in Canada, aligning with the increasing demand for EVs in North America. The collaboration with government entities and industry partners underscores Honda’s dedication to sustainable mobility solutions.