Honda weighs a $14 billion plan for electric vehicle production in Canada

Honda weighs a $14 billion plan for electric vehicle production in Canada
Honda weighs a $14 billion plan for electric vehicle production in Canada

Honda Motor Co. intends to build an electric vehicle plant in Canada that may include in-house battery manufacturing.

Honda Motor Co. plans on developing an electric vehicle plant in Canada as part of a near-2 trillion-yen ($13.83 billion) project that might involve in-house battery manufacture.

The project might be one of Honda’s greatest investments.

Japan’s second-largest automaker has been hesitant to increase electric vehicle sales.

According to Canada’s industry minister’s office, stories about Honda looking to make a big investment in Canada testify to the quality of the country’s people and the strength of its sector.

“It is a testament to Canada’s growing reputation as a green supplier of choice and global EV leader,” said a representative for the company.

According to company figures, battery-powered vehicles accounted for less than 0.5% of Honda’s global sales of around 2.8 million vehicles in the first nine months of 2023.

The Japanese automaker is looking at many potential locations for the plant, including near an existing automobile manufacturing plant in Ontario. Honda intends to make a choice by the end of the year, and the new plant may begin operations as soon as 2028.

Based on its new Honda e:Architecture, Honda intends to commence production and sales of EVs in North America in 2026.

In 2022, the company announced a $4.4 billion joint-venture battery project in Ohio with partner LG Energy Solution.

Honda and General Motors said in October 2023 that they were abandoning a proposal to jointly produce affordable electric vehicles, a year after agreeing to collaborate in a $5 billion bid to outsell Tesla.

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