Honda’s Ambitious $14 Billion EV Production Plan in Canada

Honda Motor Co is currently exploring the possibility of establishing an electric vehicle (EV) plant in Canada as part of a substantial 2 trillion yen ($13.83 billion) initiative, which may also involve in-house production of batteries. According to reports from Japan’s Nikkei news group, this project stands out as one of Honda’s most significant investments.

Exploring Potential Sites in Canada

As part of this initiative, Honda is actively scouting various locations for the proposed plant, considering options such as situating it next to an existing automobile factory in Ontario. The automaker is keen on reaching a final decision by the end of the year, with hopes of commencing operations at the new facility as early as 2028.

While Honda has yet to officially respond to requests for comments on the report, it’s evident that the company is strategically positioning itself for a major shift towards EV production.

Strategic Moves in the EV Landscape

Already on track to commence EV production and sales in North America by 2026, based on its innovative Honda e:Architecture, the automaker is actively diversifying its investments. In collaboration with partner LG Energy Solution, Honda previously announced Ohio as the chosen site for their $4.4 billion joint-venture battery plant in 2022.

It’s worth noting that Honda, in a significant turn of events, decided to part ways with General Motors in October 2023. The initial plan to jointly develop affordable electric vehicles (EVs) was scrapped, a year after the two automotive giants joined forces in a $5 billion effort to challenge Tesla’s dominance in sales.

As the automotive industry continues its transition towards sustainable mobility, Honda’s proposed $14 billion EV production plan in Canada reflects a proactive approach to staying ahead in the evolving market landscape.