The all-new Honda Pilot will be on display at Honda Marin in San Rafael, California on February 6, 2024.
Justin Sullivan | Getty Images
DEROIT – Honda engines and as-yet-unnamed joint venture partners plan to invest $11 billion in Ontario, Canada, to create an “end-to-end electric vehicle value chain,” the Japanese automaker announced Thursday.
The the company said the modern North American EV epicenter will include modern assembly and battery plants, as well as other facilities to support the production of fully electric and fuel cell vehicles.
Honda said production of the vehicles will begin in 2028, and once fully operational, annual vehicle production capacity will be 240,000 units. The investment in Alliston, Ontario is expected to significantly facilitate achieve Honda’s goal of offering only fully electric and fuel cell vehicles by 2040.
The timing of the investment may seem odd to industry observers and investors, as many automakers have announced they are withdrawing all-electric vehicle plans amid slower-than-expected EV adoption.
Honda said the investment is aimed at “future growth in demand for electric vehicles in North America” and the battery plant will be capable of producing 36 gigawatt hours, or GWh, per year.
The project is expected to create at least 1,000 modern jobs, adding to the 4,200 workers the company currently employs at its two existing manufacturing facilities in Ontario.
Canadian Prime Minister Justin Trudeau said Thursday during a live-streamed news conference that Honda’s C$15 billion investment is the largest ever for the country’s auto industry. The company is expected to receive more than C$2.5 billion from the Canadian government in the form of tax credits and other incentives, officials said.
The investment is a huge success for Canada and comes after Honda last year confirmed a $4.4 billion investment in a modern U.S. battery plant in Ohio.
“In North America, following the initiative to establish our electric vehicle manufacturing system in the U.S., we will now begin formal discussions to establish a comprehensive electric vehicle value chain here in Canada, with the support of the governments of Canada and Ontario,” he added. – Honda CEO Toshihiro Mibe said in a statement. “We will strengthen our electric vehicle supply system and capabilities as we address future growth in demand for electric vehicles in North America.”
Honda said it had “begun the process of assessing the scope of its investment and completing negotiations with joint venture partners.” Its partner in the American facility is LG Energy Solution.
The company said it expects to finalize plans within the next six months.
