The CAD 15 billion (US$11 billion) is the biggest auto investment in Canada’s history.
Honda announces its historic plans to invest a whopping CAD 15 billion (US$11 billion) to strengthen its EV supply system and capability to cater to the future demand in North America (Canada). In fact, it aims to sell 100% BEVs and FCEVs by 2040 with this amount which also includes investments by its joint venture partners to create a comprehensive electric vehicle value chain in Canada. With this investment, Honda will construct an innovative and environmentally responsible Honda EV plant and a stand-alone Honda EV battery plant in Alliston, Ontario.
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Honda To Invest $11 Billion In Canada EV Ecosystem
The news comes after speculations of a slowdown in EV sales in the U.S. and China. Nevertheless, the IEA report determining the sales for 2024 suggests that EV sales could hit a record 17 million this year. In any case, such humungous initiatives by legacy carmakers like Honda spell positive signs for long-term sustainable future mobility solutions. In fact, the plan even includes a cathode active material and precursor (CAM/pCAM) processing plant through a joint venture partnership with POSCO Future M Co., Ltd. and a separator plant through a joint venture partnership with Asahi Kasei Corporation.
The anticipated production commencement is from 2028 onwards. Once fully operational, the plant will be able to belt out 240,000 EVs annually. On the other hand, the EV battery plant will produce 36 GWh per year. Honda also believes that it will need to hire at least 1,000 new associates for the EV and EV battery manufacturing facilities in addition to the existing 4,200 associates currently at its two existing facilities in Ontario.
To start electrification in North America, Honda chose Ohio as its EV production center. They’re upgrading their existing factories, putting $700 million into it. Plus, they’re teaming up with LG Energy Solution to build a new EV battery plant, planning to invest $4.4 billion. The Ohio EV hub will be the foundation of EV and EV battery production in North America and Honda expects EV production at the Marysville Auto Plant in late 2025.
Honda Management Comments
On this momentous occasion, Toshihiro Mibe, Global CEO of Honda said, “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.”
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Learn Electric Cars Says
North America is Honda’s largest market which is why it has such ambitious plans to enable a comprehensive and detailed transition from ICE cars to electric cars. This heavy investment points to the single-pointed focus on sustainable and green mobility solutions of the future. In comparison to the other carmakers, Honda is still lagging behind in this EV race. Sure, it had announced its 0 Series concept for the next couple of years. Still, there is nothing concrete and production-ready at the moment apart from Honda e.
In 2022, Honda said it aims to make 30 new EVs and sell over 2 million each year by 2030. They’ve already started selling e:NS1 and e:NP1 in China and e:Ny1 in Europe. In 2024, they’re launching EV SUVs made with GM: Honda Prologue and Acura ZDX/Acura ZDX Type S in North America, and N-VAN e: in Japan. After 2024, Honda will keep making more EVs at a fast pace. Let us bear witness to the future of this ambitious investment strategy.