Nikkei reported that Honda is exploring various locations for the plant, including proximity to an existing automobile factory in Ontario.
Honda Motor Co is reportedly contemplating establishing an electric vehicle (EV) factory in Canada, according to Japan's Nikkei news group. This potential project, valued at nearly 2 trillion yen (equivalent to about $13.83 billion USD), might also involve producing batteries within the facility.
The investment under consideration is anticipated to rank among Honda's most significant financial commitments, as per the report by Nikkei.
Sources suggest that the Japanese automaker is evaluating various locations for the prospective plant. Among the options being considered is the vicinity near an existing automobile manufacturing plant in Ontario. Nikkei sources indicate that Honda aims to finalize its decision by the year-end, with plans for the new facility to commence operations as early as 2028.
Upon reaching out to Honda for comment regarding the report, the company did not provide an immediate response to Reuters' request.
While Industry Minister François-Philippe Champagne refrained from confirming the news, he highlighted Canada's standing as an influential destination for major environmentally-friendly investments in the automotive sector. In a statement to Global News, Champagne acknowledged the significance of the reported investment, emphasizing Canada's competent workforce and robust industry.
According to the minister, Honda's potential considerable investment in Canada underscores the country's emerging recognition as a favored provider of sustainable solutions and a leader in the electric vehicle domain. Champagne affirmed the commitment to further fortify Canada's automotive industry to align with the demands of the 21st-century economy.
This prospective development aligns with Honda's existing plans to kickstart the production and sale of electric vehicles in North America by 2026, based on their innovative Honda e:Architecture. Earlier collaborations between Honda and LG Energy Solution also included an announcement in 2022 about Ohio being chosen as the site for their proposed joint-venture battery manufacturing plant, amounting to a projected investment of $4.4 billion.
However, it's worth noting that in October 2023, Honda and General Motors decided to abandon their joint efforts to create affordable electric vehicles. This decision came a year after both companies had initially agreed to collaborate in a $5 billion venture to rival Tesla in sales.
This news draws attention to Canada's growing stature as an attractive hub for substantial investments in sustainable automotive technology, positioning the country as a competitive force in the global electric vehicle market.
Contributions from Global News' Carly Yoshida-Butryn were used in this report.
