Honda to invest $11 billion to build EVs, battery packs in Canada

Honda to invest $11 billion to build EVs, battery packs in Canada

Honda Motor Company, a world-renowned Japanese automobile manufacturer headquartered in Minato, Tokyo, has revealed an ambitious plan to invest $11 billion in Canada to build electric vehicles (EVs). The Japanese automaker already enjoys a strong manufacturing presence in Canada as it has been actively building vehicles in this country since the 1980s, but now the company is eager to shift its presence from conventional internal combustion engines (ICEs) to EVs. The company took the decision in response to the dynamic changes in the Canadian automotive landscape and growing environmental concerns.

The amount earmarked by Honda marks the largest single automotive investment in the automotive history of the North American country. It will lead to the creation of new plants close to the company’s existing manufacturing campus in Alliston, Ontario. The target is to commence production of EVs by 2027.

To be more specific, the investment plan involves the construction of four new production plants, one of which will be for EV production, one for battery production, and the second for the production of battery components. The automaker wants to create a comprehensive local EV supply chain to build EVs at competitive prices without having an impact on the environment. The company has set a target to build only EVs and FCEVs after 2040, paving the way for its ultimate goal to achieve net zero carbon emissions by 2050.

The upcoming EV production plant will reportedly be capable of producing as many as 240,000 vehicles per annum, while the planned battery pack manufacturing facility will be able to produce 36 GWh of batteries for EVs per year. The four new plants, as per the Japanese manufacturer’s claims, will create nearly 1,000 new jobs, providing a big boost to the local economy. It is worth mentioning here that these estimated new jobs will be on top of the 4,200 jobs that are already available at the company’s manufacturing units in Ontario.

While Honda hasn’t disclosed anything about specific models to be produced at the new plant, some unconfirmed reports suggest that the initial offering will likely be an electric crossover that could hit the market by 2027, followed by a bigger Acura electric crossover in the succeeding year. At present, Honda is building the CR-V and Civic in Canada, and it has plans to add at least two new electric models to the lineup by the end of 2028.

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