Sunday, April 21, 2024
NewsFeds in Talks With Honda Around $18B EV Plant in Canada

Feds in Talks With Honda Around $18B EV Plant in Canada

Honda could bring new plant to ON

  • Honda looking at building a new EV plant

  • Could expand Alliston site with new models

The feds have been making massive investments into auto manufacturing in Canada, with new battery plants from Stellantis, Volkswagen, and Northvolt just the tip of the electrified iceberg. Now Honda is talking with the government about the possibility of a new plant to build EVs and possibly batteries.

Japanese newspaper Nikkei reported in January that Honda was considering building an EV plant in Canada, which could potentially expand its current operations in Alliston, ON. The plant is rumored to be worth $18b, with production to start in 2028.

Prime Minister Justin Trudeau has addressed the new plant. “Conversations are ongoing, but there’s no announcement today,” the PM told Automotive News Canada during a visit to see progress on the Stellantis plant in Windsor.

Any new plant would likely come with a significant incentive from the federal government and the province of Ontario. The new Volkswagen plant is expected to get more than $16b in government incentives, with the Stellantis plant getting $15b after the company briefly stopped construction to negotiate a new deal.

At the same plant visit, Trudeau would not commit to extending federal EV incentives beyond 2025. The PM said that he would like to see provinces stepping up with rebates, just days after Quebec announced phasing out its own incentive plan.


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