Honda’s Potential Investment in Canadian EV Plant
ALLISTON, Ont. — A Japanese news outlet is reporting that Honda Motor Co. Ltd. could invest upwards of $18.4 billion in an electric vehicle plant in Canada.
Plans for Vehicle and Battery Manufacturing
Nikkei Asia says the company is considering building both a vehicle and battery plant as part of efforts to catch up in the electric vehicle market.
Potential Locations and Investment Timelines
The report says Honda is looking at several sites, including next to its existing plant in Alliston, Ont., with a potential investment decision expected by the end of the year.
Honda’s Previous Agreements and the Canadian Option
Honda, which did not immediately respond to a request for comment, has an agreement in place to build an electric vehicle battery plant in Ohio with LG Solution, but the report says the company might go it alone in Canada.
LG’s Partnerships and EV Investments in Canada
LG is already in a partnership with automaker Stellantis to build a $5 billion battery plant in Windsor, Ont., one of numerous major EV investments Canada has drawn after offering generous subsidies.
Canada’s Renewable Energy and EV Mandates
The Nikkei report says the abundance of renewable energy in the country is part of the reason Honda is considering Canada, while in December the federal government mandated that all passenger vehicle sales would be electric by 2035.
Source of the Report
This report by The Canadian Press was first published Jan. 7, 2024.
The Canadian Press
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