Honda Motor Co., Ltd. has unveiled ambitious plans to establish a comprehensive electric vehicle (EV) value chain in Canada, with an estimated investment of CAD$15 billion. This strategic move aims to bolster Honda’s EV supply system and capability in preparation for the expected surge in EV demand in North America, as part of the company’s commitment to achieving carbon neutrality by 2050.
The proposed EV value chain will include the construction of an innovative and environmentally responsible Honda EV plant and a stand-alone Honda EV battery plant in Alliston, Ontario. Additionally, Honda plans to establish a cathode active material and precursor (CAM/pCAM) processing plant through a joint venture with POSCO Future M Co., Ltd., and a separator plant through a joint venture with Asahi Kasei Corporation, with further announcements to follow in their respective Ontario communities.
Honda anticipates commencing electric vehicle production in 2028, with the EV plant targeting a production capacity of 240,000 EVs per year and the EV battery plant aiming for a capacity of 36 GWh per year. These new facilities are expected to create a minimum of 1,000 new jobs, in addition to securing the current employment level of 4,200 associates at its existing manufacturing facilities in Ontario. Moreover, the investment is projected to generate significant spinoff jobs across all sites, including in the construction sector.
Collaborating with the governments of Canada and Ontario, Honda aims to drive innovation in low-emissions manufacturing by leveraging performance-based initiatives available through federal Investment Tax Credits and provincial incentives.
Honda’s North American EV strategy aligns with its overarching goal of making battery electric vehicles (BEVs) and fuel cell electric vehicles (FCEVs) represent 100% of vehicle sales by 2040. As part of this strategy, Honda has designated its existing auto production plants in Ohio, USA, as its EV Hub, with plans for EV production to commence in late 2025. The Ohio EV hub will serve as the foundation for future EV and EV battery production, sharing expertise with other Honda plants in North America, including the new EV assembly and battery plants in Ontario, Canada.
By establishing a comprehensive EV value chain in Canada, Honda aims to secure a stable supply system for batteries and increase the cost competitiveness of its EVs. Furthermore, Honda is committed to realizing low-carbon value creation throughout the entire battery lifecycle, contributing to the realization of a carbon-neutral society.
