- Honda plans to invest US$13.83 billion in a new EV plant in Canada.
- The decision on the plant’s location, possibly in Ontario, is expected by year end.
- Honda and GM recently scrapped their joint affordable EV project.
Honda Motor Co is reportedly on the brink of a major strategic shift, with plans to invest nearly ¥2 trillion (US$13.83 billion) in establishing an electric vehicle (EV) manufacturing hub in Canada. This ambitious venture could include an in-house battery production facility, marking one of Honda’s largest investments to date.
Ontario in the spotlight for Honda’s EV plant
Multiple locations are under consideration for this mega-project, including sites adjacent to Honda’s existing automobile factory in Ontario. The company is expected to finalize its decision by the year’s end, aiming for the new facility’s operational debut in 2028.
While these plans have made headlines following a report by Japan’s Nikkei news group, Honda has not officially responded to inquiries about the rumored expansion, leaving industry watchers and investors in suspense.
Also read: LG Chem announces $820 million investment for new battery cathode factory in the US
North American EV strategy
Honda’s exploration of EV production in North America isn’t a sudden pivot. The automaker plans to kickstart production and sales of EVs in the region by 2026, utilizing its innovative Honda e:Architecture. In 2022, Honda and LG Energy Solution even earmarked Ohio as the location for their US$4.4 billion joint-venture battery plant.
Also read: Honda and Acura forge new partnerships to supercharge the EV experience
Honda and GM abandon joint EV project
Adding to the complexity of Honda’s EV strategy, the company, alongside General Motors, recently scrapped their joint plan to develop affordable electric vehicles. This backtrack, announced in October 2023, came just a year after the two automotive giants committed to a US$5 billion effort to rival Tesla’s EV supremacy.
As the automotive world eagerly awaits Honda’s next move, questions abound over the company’s ability to navigate the EV market’s competitive and rapidly evolving landscape.
