Alongside recent announcements of a battery separator venture and a new BEV plant, Honda Motor also said it planned to build a comprehensive EV value chain in Canada with an approximate investment of C$15bn (US$11bn), including investment by joint venture partners, to strengthen its EV supply system and capability to prepare for a future increase in EV demand in North America.
It had begun evaluating the requirements to build an EV plant and a stand alone EV battery plant in Alliston, Ontario.
Go deeper with GlobalData
The proposed EV value chain would also include a cathode active material and precursor (CAM/pCAM) processing plant through a joint venture partnership with POSCO Future M Co., Ltd. and a separator plant through a joint venture partnership with Asahi Kasei Corporation.
Honda expected electric vehicle production would begin in 2028. Once fully operational, the EV plant would have capacity of 240,000 EVs per year and the battery plant 36GWh per year.
In addition to securing the current employment level of 4,200 workers at its two factories in Ontario, Honda estimated it would add a minimum of 1,000 new hires for the EV and EV battery plants.
The investment would also create “significant” spinoff jobs across all sites, including in construction.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataHonda had begun the process of evaluating the scope of its investment and completing negotiations with its joint venture partners. This work was expected to be finalised in the next six months and more details released then.
Honda was collaborating with the governments of Canada and Ontario to access performance based initiatives available through the federal government’s new Investment Tax Credits and provincial direct and indirect incentives.
Honda recently designated existing auto production plants in Ohio as its EV Hub, including retooling existing factories, an investment of US$700m and the construction of a joint venture EV battery plant with LG Energy Solution, with an expected investment of US$4.4bn.
The Ohio EV hub will serve as the foundation for future EV and EV battery production, sharing knowledge and expertise with other Honda plants in North America, including the new EV assembly and battery plants in Ontario.
Honda expects EV production to begin at Marysville late in 2025.
As a second step, the automaker would establish the comprehensive EV value chain that includes all aspects of EV production in Canada, from the procurement of raw materials mainly for batteries, to the production of finished EVs.
It will use production knowledge learned at the Ohio EV Hub, combined with the abundant resources and clean energy available in Canada, to establish a stable supply system for batteries, the key component of EVs, and increase cost competitiveness of its EVs as a whole.
