The Japanese car manufacturer could spend upwards of $14 billion on the massive project
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by Brad Anderson
12 hours ago
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Honda may build an electric vehicle plant in Canada that could even include the in-house production of batteries, according to a new report. It is claimed the carmaker will look to decide by the end of 2024 and could commence production at the new site as early as 2028.
North America is a hugely important market for Honda, accounting for approximately 40% of its global sales. It has already committed to start manufacturing EVs and batteries at a plant in Ohio in 2026 and is thought to be very keen to add a second EV factory in North America. It is thought to be looking at several potential sites with one of the most likely being a plant next to an existing factory it operates in Ontario.
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Nikkei Asia understands that Honda could spend as much as 2 trillion yen ($14 billion) on the project. Canadian officials are expected to meet with Honda representatives this week to discuss the plans.
It is understood that Canada’s plan to ban the sale of new gasoline and diesel-fueled passenger vehicles in 2035 has sparked Honda’s interest in it. Additionally, the country has lots of renewable energy sources, helping to reduce its carbon footprint per unit of electricity that is generated.
While Honda’s sales goals for its EVs are not as aggressive as some of its rivals, it does aim for EVs to account for 40% of its North American sales in 2030 and 80% in 2035.
Its forthcoming EV plant in Ohio is being established alongside South Korean battery manufacturer LG Energy Solution. Interestingly, the brand is thought to be interested in manufacturing batteries in Canada on its own but could partner with one of the firms it is currently investigating new technologies with, including solid-state batteries.
When quizzed by The Globe and Mail about the firm’s plans for a Canadian EV factory, Honda spokesperson John Bordignon simply said the company “is considering a number of initiatives as we move into the electrified era.”
