According to a report by Japanese media outlet Nikkei, Honda is considering Canada for the construction of a plant to produce electric vehicles and batteries, a project estimated at some $18.5 billion CAD.
This project could become one of Honda's biggest investments.
The Japanese automaker is studying several potential sites for the future plant, including close to the facility it already has in Alliston, Ontario. Nikkei reports that the company hopes to make a decision by the end of the year.
The new plant would be operational from 2028.
This year, recall, Honda will launch its first all-electric model. The Prologue is developed jointly with General Motors and uses that automaker’s Ultium platform. Thereafter, Honda will produce models based on its own e:Architecture structure. The first of those models are scheduled for 2026.
In 2022, Honda and its partner LG Energy Solution announced that Ohio would be the site of their future battery factory. That potential facility, worth $4.4 billion USD, could also be an option for the company's projects.
Canadian Minister of Innovation, Science and Industry Industry François-Philippe Champagne told Automotive News Canada:
"Reports that Honda is looking to investment in Canada is a testament to the quality of our workforce and the and the strength of our industry. It's a testament to Canada's growing reputation as a green supplier of choice and a world leader in electric vehicles. We continue to work tirelessly to position Canada's automotive sector in the 21st century economy.”
Honda Canada declined to respond directly to inquiries about the Nikkei report, nor did it confirm it was discussing an investment with Ontario’s government. Honda Canada spokesperson John Bordignon said Honda was “considering various options for increasing local production capacity. However, we have anything to share at this time. Honda is currently concentrating on the center center it is building in Ohio, where production of electric vehicles and batteries should begin at the end of 2025.”
One more story to follow in 2024. Clearly, an investment of this nature would be welcome news in the industry.