Thursday, May 23, 2024
NewsHonda in Ontario: $15 billion for the supply chain

Honda in Ontario: $15 billion for the supply chain

Honda's $15 billion plan is not just to produce electric vehicles in Canada.

  • Honda’s electric vehicle supply chain will be based in Alliston, Ontario.

  • The estimated investment is $15 billion.

  • In addition to an electric vehicle assembly plant, the plan includes a development plant for electric vehicle batteries and cathodes.

Honda has decided to locate its North American electric vehicle supply chain in Alliston, Ontario. The automaker has made its $15 billion investment official.

Not just electric vehicles

Honda’s plan with this project is not just to produce electric vehicles in Canada. In fact, the automaker has announced that it will establish its electric vehicle supply chain here. A partnership has been signed with POSCO Future M Co. and Asahi Kasei Corporation to develop battery components, including cathodes.

The new facilities will work in conjunction with what Honda describes as the “EV Hub” project in Ohio, USA.

2024 Honda Prologue | Photo: Honda

Production scheduled to start in 2028

As well as announcing the official launch of its project, Honda has also provided part of its timetable. Indeed, the automaker aims to begin assembling electric vehicles in the new facilities as early as 2028. Eventually, the plant will be able to manufacture 240,000 electric vehicles a year, with a capacity of 36 GWh per year.

Honda estimates that 1,000 new jobs will be created. These are in addition to the 4,200 employees at the automaker’s existing plants in Ontario.

This project is being carried out in collaboration with the governments of Ontario and Canada. It will be recalled that the federal budget tabled last week included a major tax credit for companies wishing to set up their electric vehicle supply chain on Canadian soil.


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