Honda Motor Co. said Thursday it aims to build new electric vehicle facilities in Canada, including an EV factory and battery plant, in a project whose total investment will reach about 15 billion Canadian dollars ($11 billion).
The Japanese automaker said it has started talks with Canadian authorities on subsidies for the new plants, to be built alongside its existing factory near Toronto. In the bid to establish a complete EV supply chain in Canada, Honda is expected to provide 60 to 70 percent of the overall investment, with materials suppliers also sharing the costs.
Honda said it plans to start production at the new EV plant, which will be the second of its kind in North America, in 2028, setting its production capacity at up to 240,000 units annually.
"To further accelerate our electrification efforts in Canada, Honda will take another major step forward," Honda President Toshihiro Mibe said during a ceremony at the company's factory in Ontario Province, also attended by Canadian Prime Minister Justin Trudeau.
Mibe said, "We will establish a stable supply system for EV batteries and make our EVs more cost competitive."
"Today, Honda is making Canadian automotive history," Trudeau said. "With this announcement, we will be investing to create Canada's first comprehensive electric vehicle supply chain from start to finish."
Describing Honda's plan as "the largest auto investment in Canada's history," Trudeau said it will help create more than 1,000 jobs in the country.
Under the planned investment, Honda is also considering building two other plants for core components of EV batteries, to be operated by joint venture firms with Posco Future M Co. of South Korea and Asahi Kasei Corp. of Japan, respectively.
The move comes as the company's presence in North America, which accounts for about 40 percent of its global car sales, has been overshadowed by a rise in EVs, such as those made by U.S. EV giant Tesla Inc.
The new plants are expected to help Honda achieve its goal of making EVs and hydrogen-driven fuel-cell vehicles account for 40 percent of its sales in the region by 2030, with an envisioned rise to 100 percent by 2040.
Honda is currently retooling its existing factory in Ohio in the United States so it can produce all-electric vehicles from 2025.
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