• Honda confirms it will invest $15 billion in Ontario to build four plants dedicated to electric vehicle assembly.
Recent reports of an imminent announcement from Honda concerning a major investment in Ontario to build electric vehicles have found confirmation. The Japanese automaker is making investments that will entail injecting $15 billion into the Ontario economy.
The investment will go towards the construction of four new plants that will manufacture EV batteries as well as new all-electric models. Honda's announcement was made in the presence of Canadian Prime Minister Justin Trudeau and Ontario Premier Doug Ford.
Prior to the announcement, a government press release to the media referred to "Canada's first complete electric vehicle supply chain".
By 2028, four plants will be built on the Alliston, Ontario site, the first of which will be entirely dedicated to electric vehicle assembly. A battery factory will be able to supply it, on site, which represents undeniable advantages.
"Honda will also build an active materials and cathode precursor processing plant as part of a joint venture partnership with POSCO Future M Co., Ltd. and a separator plant as part of a joint venture partnership with Asahi Kasei Corporation," says the government press release.
When the plant is operational in 2028, it’s estimated it will produce up to 240,000 vehicles a year, creating 1,000 jobs in the process.
Prime Minister Trudeau described the project as "the largest automotive investment in Canadian history". He added that the country's natural resources had helped make the deal possible, but that the country's greatest asset was its highly skilled workforce.
The amount invested is double that announced earlier, both for Volkswagen in Ontario and Northvolt in Quebec.
Doug Ford added that the investment is "a game-changer for the industry", and called it a generational investment.
Governments will contribute up to $5 billion, but not in the form of a direct loan, but rather amounts granted through tax credits.
"Through the Electric Vehicle Supply Chain Investment Tax Credit and the Clean Technology Manufacturing Investment Tax Credit, Honda and its partners will receive more than $2.5 billion in support from the federal government," said Chrystia Freeland, Canada's Minister of Finance.
Ontario's support is $2.5 billion, with direct and indirect incentives.
Honda CEO Toshihiro Mibe, on hand for the announcement, said details of the $15 billion investment will be unveiled over the next six months.