Honda plans to invest $15 billion in Ontario to establish four new manufacturing plants, marking Canada’s inaugural electric vehicle (EV) supply chain. The investment includes constructing Honda’s first EV assembly plant and a standalone EV battery plant in Alliston, Ontario. Additionally, Honda will establish a cathode active material and precursor processing plant and a separator plant through joint ventures. By 2028, the assembly plant is expected to produce up to 240,000 vehicles annually, generating over 1,000 manufacturing jobs.
Prime Minister Justin Trudeau emphasized Canada’s skilled workforce as a key factor in attracting such investments. Premier Doug Ford hailed the investment as a historic achievement, supported by $2.5 billion in direct and indirect incentives. Ontario aims to surpass China in the global supply chain ranking with this investment, having already attracted over $43 billion in auto and EV investments in three years. Federal tax credits further incentivize EV investment, with Honda set to benefit from up to $2.5 billion in support, bringing total government assistance to $5 billion. Honda’s CEO plans to unveil detailed investment plans over the next six months, which also ensure job security for the existing 4,200 associates in Ontario.
