Japanese automaker, Honda Motor Co, has begun planning to build an electric vehicle (EV) plant in Canada to bolster its electric vehicle (EV) presence, according to reports from Japan’s Nikkei news group.
The project, valued at nearly 2 trillion yen ($13.83 billion), could potentially incorporate in-house production of batteries, making it one of Honda’s most significant investments to date.
While Honda has not officially commented on the reports, Canada’s industry minister’s office has acknowledged the potential investment, highlighting it as a testament to the country’s skilled workforce and robust industrial sector. The statement lauded Canada’s reputation as a preferred green supplier and a global leader in electric vehicles.
Honda is currently exploring various locations for the proposed plant, with one option being next to an existing automobile factory in Ontario. The decision-making process is expected to conclude by 2024’s end, and the prospective plant could commence operations as early as 2028.
As part of Honda’s broader strategy, the company had previously outlined plans to begin EV production and sales in North America by 2026, based on its new Honda e: Architecture. Additionally, in 2022 Honda, in collaboration with LG Energy Solution, chose Ohio as the site for a $4.4 billion joint-venture battery plant.
However, it’s worth noting that in October 2023, Honda and General Motors decided to abandon their joint development of affordable EVs, a year after unveiling a $5 billion partnership aimed at challenging Tesla in sales.
Despite this setback, Honda’s potential investment in the Canadian EV plant shows the automaker’s commitment to expanding its footprint in the rapidly evolving electric vehicle market.