Honda Motor announced plans to build a comprehensive EV value chain in Canada with an approximate investment of $15 billion CAD (approx. $11 billion USD), 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 said it has begun evaluating the requirements to build a 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 Co. and a separator plant through a joint venture partnership with Asahi Kasei Corporation, with announcements to follow in its respective Ontario communities.
Honda expects EV value chain production will begin in 2028. Once fully operational, the 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 company said this investment in the new facilities will also create significant spinoff jobs across all sites, including in the construction sector.
Honda is currently evaluating the scope of its investment and completing negotiations with its joint venture partners. This work is expected to be finalized during the next six months and more details will be shared at that time, Honda said.
To support this project, Honda said it is collaborating with the governments of Canada and Ontario for low-emissions manufacturing by accessing performance-based initiatives available through the federal government’s new investment tax credits and provincial direct and indirect incentives.
Honda said it has set a goal to make BEVs and FCEVs represent 100% of vehicle sales by 2040. 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 $700 million, and the construction of a joint venture EV battery plant with LG Energy Solution, with an expected investment of $4.4 billion.
Honda said it expects EV production to begin at the Marysville Auto Plant in late 2025.
As a second step in this initiative, Honda will strive to establish a comprehensive EV value chain that includes all aspects of EV production in Canada, from procuring raw materials mainly for batteries to producing finished EVs. Honda said it will leverage 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, the key component of EVs, and increase the cost competitiveness of its EVs as a whole.
Furthermore, with an eye toward secondary use and the recycling of batteries, Honda said it will realize low-carbon value creation throughout the entire battery life cycle.
