Honda Motor announces $11bn investment to enhance North American EV production
Honda Motor Co., Ltd. has unveiled a comprehensive plan to bolster its electric vehicle (EV) production capabilities in North America with a massive investment of approximately CAD$15 billion (USD$11 billion), including contributions from joint venture partners. This strategic move aims to prepare for the anticipated surge in EV demand across the continent, centering its efforts in Alliston, Ontario.
Honda’s ambitious project in Canada includes the establishment of a new, innovative Honda EV plant and a dedicated Honda EV battery plant. The initiative is set to generate substantial economic activity and job opportunities in the region. By 2028, the EV plant expects to reach a production capacity of 240,000 vehicles per year, while the battery facility will boast a capacity of 36 GWh annually.
The expansive Honda EV value chain will also feature a cathode active material and precursor (CAM/pCAM) processing plant, in collaboration with POSCO Future M Co., Ltd., and a separator plant through a joint venture with Asahi Kasei Corporation. These facilities will be located in Ontario, with further details forthcoming.
The new EV and battery manufacturing facilities are projected to add at least 1,000 new jobs, maintaining Honda’s current workforce of 4,200 associates at its two existing manufacturing sites in Ontario. The investment will also spur significant secondary employment opportunities, particularly in the construction sector, as the sites are developed.
To facilitate this expansive project, Honda is working closely with the Canadian and Ontario governments, tapping into federal Investment Tax Credits and provincial incentives aimed at fostering low-emissions manufacturing. This collaboration underscores Honda’s commitment to sustainability and its goal to achieve carbon neutrality by 2050.
This Canadian expansion is a critical part of Honda’s broader strategy to electrify its North American operations. The company has already begun transforming its Ohio facilities into an EV production hub, with a significant investment earmarked for retooling and constructing a joint EV battery plant with LG Energy Solution.
Looking forward, Honda aims to leverage the extensive resources and clean energy available in Canada to create a stable and cost-effective supply system for EV batteries. This initiative will not only enhance the competitiveness of Honda’s EVs but also contribute to a sustainable, carbon-neutral future through the entire lifecycle of EV batteries, from production to recycling.
Honda’s substantial investment in Canadian EV production facilities not only reflects its commitment to leading the electrification wave in North America but also strategically positions the company at the forefront of the global shift towards sustainable automotive solutions. This expansion will significantly enhance Honda’s production capacity and technological capabilities in EV manufacturing, ensuring it remains competitive in the burgeoning EV market.