Honda Motor Co., Ltd. announced on Thursday that it plans to build a comprehensive EV value chain in Alliston, Ontario.
The company says it is building the CAD $15 billion plant to strengthen its EV supply system and capability to prepare for a future increase in EV demand in North America.
Honda says it has begun evaluating the requirements to build an innovative and environmentally responsible Honda EV plant and a stand-alone Honda EV battery plant in Alliston, located about 80 kilometres northwest of Toronto.
Jean Marc Leclerc, President and CEO of Honda Canada Inc., said “Today’s announcement is a historic investment by a manufacturer in the Canadian auto industry.” He added “It proudly honours the highly skilled associates who have earned a global reputation for manufacturing excellence and represents Honda’s recognition of the long-term attractiveness of the Canadian electric vehicle manufacturing ecosystem.”
The proposed Honda EV value chain will 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 says announcements on these projects will follow in their respective Ontario communities.
Honda expects that electric vehicle production will begin in 2028. Once fully operational, the EV plant will have a production capacity of 240,000 EVs per year and the EV battery plant will have a capacity of 36 GWh per year.
In addition to 4,200 jobs at its two existing manufacturing facilities in Ontario, Honda estimates it will add a minimum of 1,000 employees will be required for the EV and EV battery manufacturing facilities. The investment in the new facilities will also create significant spinoff jobs across all sites, including in the construction sector.
Honda has begun the process of evaluating the scope of its investment and completing negotiations with its joint venture partners. This work is expected to be finalized during the next six months and Honda says more details will be shared at that time.
To support this project, Honda is collaborating with the governments of Canada and Ontario to drive innovation in low-emissions manufacturing by accessing performance-based initiatives available through the federal government’s new Investment Tax Credits and provincial direct and indirect incentives.
Honda has set a goal to make BEVs and FCEVs represent 100 per cent of vehicle sales by 2040. Toshihiro Mibe, Global CEO of Honda said “We will strengthen our EV supply system and capability with an eye toward a future increase in EV demand in North America.”
To achieve this goal, Honda says it will continue offering attractive products in this electrified era globally, including its largest market of North America.
As the first step in achieving this electrification goal in North America, Honda positioned its existing auto production plants in the state of Ohio in the U.S. as its EV Hub for production, including the retooling of existing plants, an investment of USD$700 million, and the construction of a joint venture EV battery plant with LG Energy Solution, with an expected investment of USD$4.4 billion.
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, Canada. Honda expects EV production to begin at the Marysville Auto Plant in late 2025.
As a second step in this initiative, Honda will strive to establish a 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. Honda says it will leverage EV 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.
Furthermore, with an eye toward secondary use and the recycling of batteries, Honda will realize low-carbon value creation throughout the entire battery life cycle, through which the company says will establish a highly profitable business foundation and contribute to the realization of a carbon-neutral society.
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