Honda's $11 Billion Investment to Establish Comprehensive Electric Vehicle Value Chain in Ontario, Canada

Honda, a leading automotive manufacturer, has announced its ambitious plan to bolster the electric vehicle (EV) supply system and capability in North America with a focus on Ontario, Canada. This strategic move is part of Honda's commitment to support the global initiative aimed at achieving 100% of vehicle sales from battery electric vehicles (BEVs) and fuel cell electric vehicles (FCEVs) by 2040. With an investment of approximately CAD$15 billion (USD$11 billion), including contributions from joint venture partners, Honda aims to build a comprehensive electric vehicle value chain in Canada.

The plan comes on the heels of Honda's successful EV Hub project in Ohio, United States, and is poised to become a cornerstone of the company's overall value chain in North America. Recognizing the long-term potential of the Canadian EV manufacturing ecosystem, Honda Motor Co., Ltd. has unveiled its intention to construct innovative and environmentally responsible EV and EV battery plants in Alliston, Ontario. Moreover, the proposed value chain will encompass additional facilities such as a cathode active material and precursor (CAM/pCAM) processing plant and a separator plant through joint venture partnerships with esteemed companies like POSCO Future M Co., Ltd. and Asahi Kasei Corporation.

The envisioned electric vehicle production is slated to commence in 2028, with the EV plant boasting a capacity to manufacture 240,000 EVs annually and the EV battery plant expected to produce 36 GWh per year. This substantial investment not only safeguards the current employment level of 4,200 associates across Honda's existing manufacturing facilities in Ontario but also promises to create at least 1,000 new job opportunities, with additional spinoff employment opportunities expected across various sectors, including construction.

Honda is actively engaged in evaluating the scope of its investment and finalizing negotiations with its joint venture partners, with plans to conclude these discussions within the next six months. The company is collaborating closely with the governments of Canada and Ontario to leverage performance-based initiatives and incentives aimed at fostering innovation in low-emissions manufacturing, thereby driving the realization of a carbon-neutral society.

This strategic move aligns with Honda's overarching goal of achieving carbon neutrality across all its products and corporate activities by 2050. By prioritizing the electrification of its product lineup, Honda aims to ensure that BEVs and FCEVs represent the entirety of its vehicle sales by 2040. As part of its North American EV strategy, Honda has designated its Ohio EV Hub as the cornerstone for EV production, complemented by the establishment of comprehensive EV value chains in Canada. Through these initiatives, Honda seeks to leverage its expertise and resources to establish a stable supply system for batteries and enhance the cost competitiveness of its electric vehicles.

Jean Marc Leclerc, President and CEO of Honda Canada Inc., hailed the investment as a historic milestone for the Canadian auto industry, emphasizing Honda's unwavering commitment to manufacturing excellence and its recognition of the immense potential of the Canadian electric vehicle manufacturing ecosystem.

Honda's monumental investment underscores its commitment to driving innovation and sustainability in the automotive industry, marking a significant step towards a greener, more electrified future.