Honda Motor plans to build an EV value chain in Canada with an approximate investment of CAD$15 billion, including investment by joint venture partners, to 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 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 (CAM/pCAM) processing plant through a joint venture partnership with POSCO Future M and a separator plant through a joint venture partnership with Asahi Kasei Corporation.
Honda expects that electric vehicle production will begin in 2028. Once fully operational, the EV plant will have a production capacity of 240,000 EVs per year and the EV battery plant will have a capacity of 36 GWh per year. In addition to securing the current employment level of 4,200 associates at its two existing manufacturing facilities in Ontario, Honda estimates it will add a minimum of 1,000 new associates for the EV and EV battery manufacturing facilities. The investment in the new facilities will also create significant spinoff jobs across all sites, including in the construction sector.
Honda has started to evaluate the scope of its investment and complete negotiations with its joint venture partners.
Honda is collaborating with the governments of Canada and Ontario by accessing performance-based initiatives available through the federal government's Investment Tax Credits and provincial direct and indirect incentives.
Honda's North American EV strategy
Honda has set a goal to make BEVs and FCEVs represent 100 percent of vehicle sales by 2040. To achieve this goal, Honda will continue to offer vehicles and products in this electrified era globally, including North America.
As the first step in achieving this electrification goal in North America, Honda positioned its existing auto production plants in the state of Ohio in the U.S. as its EV Hub for production, including the retooling of existing plants, an investment of USD$700 million, and the construction of a joint venture EV battery plant with LG Energy Solution, with an expected investment of USD$4.4 billion.
The Ohio EV hub will serve as the foundation for future Honda EV and EV battery production, sharing experience with other Honda plants in North America. Honda expects EV production to begin at the Marysville Auto Plant in late 2025.
As a second step in this initiative, Honda will look to establish an EV value chain that includes all aspects of EV production in Canada. Honda will utilize EV production knowledge learned at the Ohio EV Hub, combined with the resources and clean energy available in Canada, to establish a stable supply system for batteries and increase the cost competitiveness of its EVs as a whole.
