HONDA ANNOUNCES $15 BILLION INVESTMENT TO STRENGTHEN EV SUPPLY SYSTEM IN CANADA
HONDA ANNOUNCES $15 BILLION INVESTMENT TO STRENGTHEN EV SUPPLY SYSTEM IN CANADA
Posted on April 25, 2024
Honda Motor Co., Ltd. has unveiled plans to bolster its electric vehicle (EV) supply system and capabilities in North America, with a particular focus on meeting the anticipated surge in EV demand. The company is aligning with a global initiative aimed at achieving 100% of vehicle sales through Battery Electric Vehicles (BEVs) and Fuel Cell Electric Vehicles (FCEVs) by 2040.
The proposed investment of approximately CAD$15 billion, inclusive of contributions from joint venture partners, will see the establishment of a comprehensive EV value chain in Canada. This initiative follows Honda's successful EV Hub project in Ohio, United States, and is set to become a pivotal component of the company's overall value chain in North America.
Honda's strategy includes the evaluation of building an innovative and environmentally responsible Honda EV plant and a standalone Honda EV battery plant in Alliston, Ontario. Additionally, the envisioned EV value chain will incorporate a cathode active material and precursor processing plant through a joint venture with POSCO Future M Co., Ltd., and a separator plant through a partnership with Asahi Kasei Corporation.
The anticipated electric vehicle production is slated to commence in 2028, with an annual capacity of 240,000 EVs at the EV plant and 36 GWh at the EV battery plant. This expansion is expected to not only maintain the current employment level of 4,200 associates in Ontario but also create a minimum of 1,000 new job opportunities across various sectors.
In collaboration with the governments of Canada and Ontario, Honda aims to leverage performance-based initiatives, such as Investment Tax Credits and other incentives, to drive innovation in low-emissions manufacturing. The company's commitment to achieving carbon neutrality by 2050 underscores its dedication to sustainable practices and the transition towards electrification.
Toshihiro Mibe, Global CEO of Honda, expressed the company's progress towards carbon neutrality and emphasized the importance of strengthening the EV supply system to meet the growing demand in North America. Jean Marc Leclerc, President and CEO of Honda Canada Inc., hailed the investment as a historic milestone in the Canadian auto industry, recognizing the skilled associates and the country's potential in the EV manufacturing ecosystem.
For further updates and information, visit www.hondanews.ca. Honda's ambitious investment signals a significant step towards a greener automotive future, aligning with its vision for sustainable mobility and environmental stewardship.
