Automotive Industry
Honda to Establish EV Value Chain in Ontario
The Japanese automaker is investing more than 15 billion Canadian dollars to assemble EVs in Canada.
ALLISTON, ON—Honda Motor Co. plans to build a comprehensive EV value chain in Canada with an approximate investment of 15 billion Canadian dollars ($11.2 billion), including investment by joint venture partners, to prepare for a future increase in EV demand in North America.
Honda has begun evaluating the requirements to build an EV assembly plant and a stand-alone EV battery plant in Alliston, Ontario. The proposed EV value chain will also include a cathode material processing plant through a joint venture with POSCO Future M Co. and a separator plant through a joint venture with Asahi Kasei Corp.
Honda expects that EV production will begin in 2028. Once fully operational, the EV plant will be able to assemble some 240,000 EVs per year, while the battery plant will have a capacity of 36 gigawatt-hours per year.
In addition to securing the employment of 4,200 workers at its two existing assembly plants in Ontario, Honda estimates it will add at least 1,000 workers at the two new facilities.
To support this project, Honda is working with the governments of Canada and Ontario to obtain performance-based financial initiatives for the projects.
Honda wants battery-powered and fuel-cell-powered EVs to represent 100 percent of vehicle sales by 2040. The company has also set a goal to realize carbon neutrality for all its products and corporate activities by 2050.Looking for quick answers on assembly and manufacturing topics? Try Ask ASM, our new smart AI search tool. Ask ASM
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