Honda to Invest $11 Billion in EV Supply System & Capability in Canada

Honda Motor Co., Ltd. plans to build a comprehensive EV value chain in Canada with an approximate investment of $11 billion, including investment by joint venture (JV) partners. The investment will strengthen its EV supply system and capability to prepare for a future increase in EV demand in North America.

Honda has begun evaluating the requirements to build an innovative and environmentally responsible Honda EV plant and a stand-alone Honda EV battery plant in Alliston, Ontario.

The proposed Honda EV value chain will also include a cathode active material and precursor processing plant through a JV partnership with POSCO and a separator plant through a JV partnership with Asahi Kasei Corporation.

Honda expects that EV production will begin in 2028. 

Once fully operational, the EV plant will have a production capacity of 240,000 EVs per year.

The EV battery plant will have a capacity of 36 GWh per year. 

The plan follows the announcement of the Honda EV Hub project in Ohio in the US.

​​​​​Toshihiro Mibe, Global CEO of Honda, says: “Honda is making progress in our global initiatives toward the realization of our 2050 carbon neutrality goal.  In North America, following the initiative to establish our EV production system capability in the U.S., we will now begin formal discussions toward the establishment of a comprehensive EV value chain here in Canada, with the support of the governments of Canada and Ontario. We will strengthen our EV supply system and capability with an eye toward a future increase in EV demand in North America.”

Jean Marc Leclerc, President and CEO of Honda Canada Inc., adds: “Honda of Canada Manufacturing is one of the premier automotive manufacturing facilities in the world and for nearly forty years, our work has been guided by determination, innovation, and a relentless drive to evolve.Today's announcement is a historic investment by a manufacturer in the Canadian auto industry. It proudly honours the highly skilled associates who have earned a global reputation for manufacturing excellence and represents Honda’s recognition of the long-term attractiveness of the Canadian electric vehicle manufacturing ecosystem.”

Honda Motor Co., Ltd. is responsible for the development, production and sales of automobiles, motorcycles, power products and aviation products worldwide.