Honda's $15 Billion Investment to Establish Comprehensive EV Value Chain in Canada
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Honda’s $15 Billion Investment to Establish Comprehensive EV Value Chain in Canada

Honda 15 Billion Investment to Establish Comprehensive EV Value Chain in Canada - CR-V End of Line
  • Honda’s CAD$15 billion investment showcases confidence in Canadian manufacturing and EV capabilities, further strengthening the EV value chain.
  • New facilities in Alliston will boost EV production to 240,000 vehicles annually and create 1,000 jobs.
  • Backed by Canadian and Ontario governments, Honda’s investment aims to drive low-emissions innovation.

To strengthen its electric vehicle (EV) production system in North America, Honda announced its plan to invest approximately CAD$15 billion (USD$11.7 billion) in Canada, signaling a significant shift toward electrification. This comprehensive plan includes investments from partners collaborating in a joint venture. Its goal is to strengthen the entire EV supply chain and expand production capacity to keep pace with future demand.


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Honda’s investment includes constructing a state-of-the-art EV assembly plant and a stand-alone battery production facility in Alliston, Ontario. These facilities, once operational in 2028, will have a combined production capacity of 240,000 electric vehicles, including the CR-V Hybrid and Honda Civic Hybrid, and 36 GWh of EV battery output annually. In addition to maintaining the existing workforce of 4,200 associates at its Ontario plants, the new facilities will create at least 1,000 new jobs, with significant spinoffs in construction and related sectors.

Honda 15 Billion Investment to Establish Comprehensive EV Value Chain in Canada - Justin Trudeau

Jean Marc Leclerc, President and Chief Executive Officer of Honda Canada, highlighted the importance of this investment, stating, “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.”

To further support its EV value chain, Honda has formed joint ventures with key industry players. Through partnerships with POSCO Future M Co., Ltd. and Asahi Kasei Corporation, Honda will establish processing plants for cathode active material and separator components in Ontario communities. The completion of these joint ventures is expected to finalize within six months, with more announcements to follow.

Toshihiro Mibe, Global CEO of Honda, emphasized the company’s commitment to sustainability, saying, “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.”

The Canadian and Ontario governments are backing Honda’s ambitious plans with performance-based initiatives and incentives. This backing is aimed to drive innovation in low-emissions manufacturing, in line with Honda’s pledge to achieve carbon neutrality by 2050.


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Justin Trudeau, Prime Minister of Canada, hailed the investment as a “game changer for manufacturing in Canada.” He remarked, “Honda’s investment is a vote of confidence in Canada, in Canadian auto workers, and in our manufacturing sector. Together, we’re creating good-paying jobs, growing our economy, and keeping our air clean.”

Honda 15 Billion Investment to Establish Comprehensive EV Value Chain in Canada - Toshihiro Mibe and Justin Trudeau

Doug Ford, Premier of Ontario, echoed this sentiment, noting that Honda’s $15 billion investment fulfills a key promise to revitalize Ontario’s economy. He stated, “Ontario has what it takes to secure the jobs of the future as the world leader in electric vehicle manufacturing, with better jobs and bigger paycheques for our world-class workers.”

This investment aligns with Honda’s broader North American EV strategy, which includes retooling existing plants in Ohio and constructing a joint venture EV battery plant with LG Energy Solution. The retooled Ohio plants will serve as the foundation for future EV production, sharing knowledge and expertise with other Honda plants in North America, including the new Ontario facilities.

In pursuit of building a complete EV ecosystem in Canada, Honda plans to use the knowledge acquired from its EV hub in Ohio and the resources at hand in Canada. The goal is to create a reliable and cost-effective EV production setup. This approach also considers the secondary use and recycling of batteries, further contributing to Honda’s carbon-neutral goals.

François-Philippe Champagne, Canada’s Minister of Innovation, Science and Industry, highlighted the strategic importance of Honda’s investment. “Canada is seizing the opportunity and positioning itself as a global leader when it comes to building the cars of the future,” he said. “With a highly skilled workforce, clean energy, and access to markets, Canada has everything that companies like Honda need to grow.”


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IMAGES: HONDA CANADA

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AUTHOR: 

RANDI BENTIA

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