HONDA INVESTING $11 BILLION TO BUILD EVS AND BATTERIES IN CANADA

Honda has announced it will spend $11 billion to build electric vehicles and assembly batteries in the Canadian province of Ontario. The new investments will form part of a greater Honda EV value chain, including a cathode active material and precursor processing plant. The Japanese automaker says production of North American-made electric vehicles will kick off in 2028, with the facility able to spew out around 240,000 EVs and 36 GWh worth of batteries each year.

The new EV production facility and independent battery plant will be near the brand’s existing factory in Alliston, Ontario. The automaker says 1,000 new jobs will be created due to the investment, while 4,200 existing positions will remain secure for the foreseeable future. Still in the early stages, Honda will evaluate and complete negotiations with partners before finalizing plans in the next six months. On a separate note, Honda is looking into establishing an electric vehicle partnership with Nissan.

Biggest Automotive Investment Ever In Canada

Honda has partnered with Posco Future M and the Asahi Kasei Corporation to produce cathode materials for EV batteries. These joint ventures will promote Honda’s growth in the United States, particularly in the electric vehicle sector, where it has lagged. In total, the investment will see the establishment of four new plants for Honda’s electric vehicle supply chain.

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By localizing the production of batteries and EVs, Honda can keep pricing down and take advantage of government incentives. The company has yet to announce where these plants will be located. Speaking at the announcement, Canadian Prime Minister Justin Trudeau described the investment as "historic," as it represents the largest automotive investment in the country’s history. "Today, Honda is making Canadian automotive history. With this announcement, we will invest to create Canada’s first comprehensive electric vehicle supply chain from start to finish," he said at a press conference.

Plans To Build Honda EVs In America, Too

Aside from this investment in Canada, Honda also plans to manufacture electric vehicles in the United States, choosing Ohio as the location of its so-called EV hub. Thanks to a $700 million investment, the facility will “serve as the foundation” for producing electric vehicles and batteries, with the Marysville plant expected to start building EVs in late 2025. The facility, which builds the Honda Accord and Acura Integra, among other cars, has merged its two production lines. The second line will be reconfigured to make electric and ICE vehicles simultaneously. Honda’s East Liberty facility will transition to building EVs from next year.

Honda has yet to say what EV it will produce in the United States, but we expect an announcement in the coming months. As the Prologue is built in Mexico, it will likely be something else, such as the Afeela from Sony Honda Mobility. Orders for the electric sedan are expected to open next year, with US deliveries commencing in 2026, so there’s a strong chance it could be this. Speaking on the latest investment, Honda CEO Toshihiro Mibe said Honda will be able to strengthen its capabilities and electric vehicle supply chain "with an eye toward a future increase in EV demand in North America."