Honda plans to construct in Canada a $11 billion electric car center
In order to establish a «comprehensive EV value chain,» Honda Motor and its joint venture partners will to invest $11 billion in Ontario, Canada, the Japanese manufacturer said on Thursday.
According to the firm, new assembly and battery plants, together with other infrastructure to support the manufacture of fuel cell and all-electric vehicles, will be part of the new epicenter for electric vehicles in North America.
According to Honda, car manufacturing will start in 2028 and reach a capacity of 240,000 units annually once it is fully operational. The Alliston, Ontario, investment is anticipated to have a significant positive impact on Honda’s objective of providing only fuel cell and all-electric vehicles by 2040.
Investors and industry observers may find the timing of the investment peculiar because several automakers have declared intentions to scale back their all-electric car programs in response to the EV market’s slower-than-anticipated uptake.
According to Honda, the battery factory will be used «for a future increase in EV demand in North America,» with a capacity of 36 gigawatt hours, or GWh, annually.
In addition to the 4,200 workers the firm now employs at its two existing production plants in Ontario, the project is projected to produce at least 1,000 new employment.
During a livestreamed news conference on Thursday, Canadian Prime Minister Justin Trudeau declared that Honda’s 15 billion Canadian dollar investment is the largest ever for the nation’s automotive sector. According to sources, the Canadian government is anticipated to provide the corporation with tax credits and other incentives worth up to CA$2.5 billion.
