Honda is currently considering the establishment of a $14 billion electric vehicle (EV) and battery plant in Canada. This potential investment reflects the company's commitment to expanding its presence in the growing EV market. The construction of this plant would not only signify a significant financial commitment from Honda but also contribute to the advancement of sustainable transportation technology. This strategic move aligns with Honda's goal to stay competitive in the evolving automotive industry and meet the increasing demand for electric vehicles.
Japanese automaker Honda has been, shall we say, laying very low when it comes to developing a decent electric vehicle, although we can expect its second EV attempt in the US, the Prologue, soon. After calling off beats with GM to “beat out Tesla” with a cheap SUV, it has now emerged with news that it is mulling over a $14 billion EV and battery plant in Canada.
Honda's Potential EV and Battery Plant in Canada
According to Japan’s Nikkei, the Japanese automaker is looking at several sites in Canada, including one near its auto factory in Alliston, Ontario. The company is expected to decide sometime this year, with production beginning in 2028.
If all goes according to plan, Honda will produce in-house batteries at the plant, which would be the company’s second EV plant in North America.
Canada's Attraction for EV Industry Investment
For its part, Canada has done a good job of attracting new investment from the EV industry. Reports say that Canadian industry minister Francois-Philippe Champagne has spent most of last year building up EV investments to solidify the country’s clean-tech future by offering tax breaks and the promise of overflowing renewable energy sources and rare minerals used in EVs.
So far, Volkswagen and its battery company PowerCo are building a gigafactory for cell manufacturing in St. Thomas, Ontario, with production starting in 2027. Swedish EV battery maker Northvolt is also building a zero-emissions battery factory in Quebec, a province with access to hydroelectric power and a lithium mine near La Corne. Of course, batteries coming from Canada with materials found in Canada will also help vehicles qualify for the US’s federal EV tax incentives.
Impact on US Market and Honda's Other EV Plans
As for Honda, it has already said that it will manufacture batteries with LG Energy Solution in Ohio starting in 2025. It also plans to convert its Honda plants in Ohio with the goal of building EVs based on the company’s new Honda e:Architecture in 2026.
Summary
The proposed investment in Canada signifies a pivotal juncture for Honda as it endeavors to fortify its position in the rapidly evolving landscape of electric mobility. By harnessing the potential of Canadian resources and leveraging strategic partnerships, Honda aims to carve a formidable presence in the realm of electric vehicles, setting the stage for a compelling trajectory in sustainable automotive innovation.
(This article is sourced from electrek.co curated by Thetransporteronline24)
