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Honda to invest $15 billion in Canadian EV value chain

Honda Motor Co., Ltd. announced its plans to establish a comprehensive electric vehicle (EV) value chain in Canada with a projected investment of approximately CAD$15 billion (USD$11 billion), which includes contributions from joint venture partners. This investment aims to bolster Honda’s EV supply system and capabilities in anticipation of rising demand for EVs in North America. The company is currently evaluating the feasibility of constructing a new Honda EV manufacturing plant and a dedicated Honda EV battery facility in Alliston, Ontario.

The proposed Honda EV value chain in Canada will feature additional components, including a cathode active material and precursor (CAM/pCAM) processing plant in collaboration with POSCO Future M Co., Ltd., and a separator plant in partnership with Asahi Kasei Corporation. Further announcements about these ventures are expected in their respective Ontario communities.

Production of electric vehicles at the new facilities is scheduled to commence in 2028. Upon completion, the EV plant is anticipated to have an annual production capacity of 240,000 EV units, and the EV battery plant will be capable of producing 36 GWh per year. The initiative is not only expected to maintain the current workforce of 4,200 at Honda’s existing manufacturing sites in Ontario but also to create at least 1,000 new jobs at the new EV and battery plants. Moreover, this investment is projected to generate substantial secondary employment opportunities, particularly in the construction industry.

Honda is also in the process of finalizing its investment details and joint venture agreements, with more information to be released within the next six months. To facilitate this expansive project, Honda is working closely with the Canadian and Ontario governments to leverage various federal and provincial incentives aimed at fostering low-emission manufacturing technologies.

In line with its global commitment to achieve carbon neutrality by 2050, Honda aims for battery electric vehicles (BEVs) and fuel cell electric vehicles (FCEVs) to comprise 100% of its vehicle sales by 2040. This strategy begins in North America with the transformation of its Ohio plants into an EV production hub, followed by the establishment of the comprehensive EV value chain in Canada. These efforts are integral to Honda’s broader strategy to enhance the cost competitiveness of its EVs through efficient production and resource utilization, ultimately contributing to a carbon-neutral future.

Written by EV Pulse Staff

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