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Honda's $11B Canada EV Push with Govt Support, 1K Jobs Added

Honda commits $11 billion to Canada for EV expansion with government incentives, aiming for 100% electrified sales by 2040.

By Bill Bullington

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4/25, 13:10 EDT
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Key Takeaway

  • Honda announces a C$15 billion ($11 billion) investment in Canada for EV production, with government incentives worth up to C$5 billion.
  • The investment includes a new battery assembly plant and expansions, creating 1,000 new jobs at the Alliston facility.
  • Partnerships with POSCO Future M Co. and Asahi Kasei Corp. aim to bolster Honda's EV supply chain in North America.

Honda's Major EV Investment in Canada

Honda Motor Co. has announced a significant investment of C$15 billion ($11 billion) to expand its electric vehicle (EV) production capabilities in Canada. This strategic move, supported by substantial financial aid from the Canadian government, underscores Honda's commitment to the growing demand for EVs in North America. The investment will be officially unveiled in Alliston, Ontario, by Honda executives alongside Canadian Prime Minister Justin Trudeau and Ontario Premier Doug Ford. This initiative is part of Honda's broader goal to have electrified vehicles constitute 100% of its sales by 2040, starting EV production by 2028.

Government Support and Strategic Partnerships

The Canadian federal government and the province of Ontario are backing Honda's investment with a package of incentives potentially worth up to C$5 billion. These incentives include investment tax credits for clean manufacturing and electric vehicle production, with Ontario also subsidizing some capital costs and potentially funding infrastructure upgrades. Honda's plan includes constructing a new battery assembly plant in Alliston and expanding existing facilities for EV production. The company is also initiating discussions with South Korea's POSCO Future M Co. for a cathode materials facility and plans to collaborate with Japan's Asahi Kasei Corp. on separator production.

Economic Impact and Industry Perspectives

Honda's investment is expected to create approximately 1,000 new jobs at the new battery plant in Alliston, adding to the 4,200 positions at Honda's existing vehicle manufacturing plant in the area. Additional jobs are anticipated from the construction of other battery material factories, although specific numbers have yet to be released. Critics, such as McMaster University professor Greig Mordue, argue that Honda's decision to invest in Ontario is driven by its own strategic interests rather than the presence of other large battery plants in the region, suggesting that Honda's investment is part of a global supply chain strategy.