Honda has revealed it will invest $15bn to build an EV production and EV battery plant in Ontario, Canada.
The company unveiled plans to create an innovative and environmentally responsible EV value chain in Canada.
The multi-billion dollar investment will cover all aspects of the value chain, helping Honda accelerate production capabilities through a stand-alone battery plant that will produce the cells essential for the separate EV production facility.
The Honda EV value chain will also include a cathode active material and precursor (CAM/pCAM) processing plant through a joint venture with POSCO Future M Co., Ltd. And a separator plant in collaboration with Asahi Kasei Corporation.
The company has begun evaluating the investment and is working to complete negotiations with its joint partners, with the work expected to be finalised in the next six months.
Commenting on Honda’s Canadian EV value chain plans, Toshihiro Mibe, Global CEO of Honda, said: “Honda is making progress in our global initiatives toward the realisation of our 2050 carbon neutrality goal.
In North America, following the initiative to establish our EV production system capability in the US, 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.”
Overview of Honda’s EV value chain plans
The Honda EV value chain is expected to open in 2028 – with the battery plant estimated to have a 36 GWh annual capacity and the EV production facility manufacturing 240,000 vehicles per year.
The new EV battery plant will create 1,000 new jobs on top of the 4,200 jobs currently at the EV production hub.
Honda says the new facilities could also create a large amount of ‘spin-off’ jobs, such as in the construction sector.
Jean Marc Leclerc, President and CEO of Honda Canada Inc., added: “Honda of Canada Manufacturing is one of the premier automotive manufacturing facilities in the world, and for nearly forty years, our work has been guided by determination, innovation, and a relentless drive to evolve.
“Today’s announcement is a historic investment by a manufacturer in the Canadian auto industry. It proudly honours the highly skilled associates who have earned a global reputation for manufacturing excellence and represents Honda’s recognition of the long-term attractiveness of the Canadian electric vehicle manufacturing ecosystem.”
Building on US success
Honda’s plans for an EV production facility and battery plant in Canada follow the announcement of an advanced EV hub in Ohio.
The company has invested $700m to retool existing plants in the region to support EV manufacturing.
This is supplemented by an additional $4.4bn investment to create an EV battery plant in partnership with LG Energy Solution.
The Ohio EV hub is set to open in late 2025, and the knowledge gained will be shared with the EV production facility and EV battery plant in Canada.
In addition to boosting manufacturing capabilities, Honda says it will also invest in securing sustainable supply chains for raw materials and battery recycling to cover all aspects of the value chain internally.
Honda aims to become carbon neutral across all its products and activities by 2050 and for BEVs and FCEVs to represent 100% of vehicle sales by 2040.
The company’s latest investments in North American EV production signal a major milestone in achieving these goals.
