Honda’s $11B EV Investment in Canada: A Comprehensive Value Chain from Assembly to Battery Production by 2028

In a recent announcement, Honda Motor has revealed that they will be investing $11 billion into Ontario, Canada as part of their mission to establish an all-encompassing electric vehicle (EV) production chain. This new North American hub for EV manufacturing is set to include brand new assembly and battery plants along with additional facilities aimed at supporting the creation of both fully electric and fuel cell vehicles. Production on these cars will commence in 2028, boasting a total capacity output of approximately 240,000 units annually once it reaches full operational status. This investment is expected to greatly aid Honda’s endeavor to entirely shift its automobile production over towards fully electric and hydrogen-powered vehicles by the year 2040. While some industry experts may view this decision as somewhat unusual given that several other car manufacturers have recently scaled back their EV plans due to slower than anticipated adoption rates, Honda has stated that these funds are being allocated in anticipation of a future rise in demand for electric cars across North America; the proposed battery plant will reportedly be able to produce 36 gigawatt hours (GWh) annually. The project is expected to create at least one thousand new job positions on top of Honda’s existing workforce count of over four and a half thousand employees in Ontario alone, as well as attracting an estimated $2.5 billion worth of financial assistance from the Canadian government through tax credits and other incentives. This substantial investment represents Canada’s largest-ever commitment to its automotive sector, according to Prime Minister Justin Trudeau who announced this news during a recent live press conference alongside Honda executives. The company’s CEO Toshihiro Mibe commented that “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 support from both Canadian and Ontario governments.” Honda has also revealed its intention to commence negotiations over the coming six months regarding the scale and makeup of this venture; notably, South Korea’s LG Energy Solution serves as an existing partner for their U.S.-based battery plant which was confirmed last year at a cost value exceeding $4 billion USD.