Honda to Build $11 Billion EV Battery and Vehicle Plant in Canada - Times of India

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Japanese auto giant

Honda

has announced the largest automotive

investment

in

Canada

's history, totaling Can$15 billion (US$11 billion), for a new

EV battery

and vehicle assembly plant.

During a joint news conference with Prime Minister Justin Trudeau and other officials, Honda's chief executive Toshihiro Mibe revealed that

electric vehicles

(EVs) will begin production at the new assembly line in 2028.

Once operational, the factory will have a capacity to produce 240,000 vehicles annually and produce 36 GWh of batteries per year.

"The world is changing rapidly, and we must work toward realizing carbon neutrality to sustain the global environment," Mibe stated.

The facility, to be built next to Honda's existing Civic and CR-V assembly plants north of Toronto, is expected to create 1,000 new jobs, adding to the 4,200 already employed.

Trudeau highlighted Ottawa's efforts to create "a whole ecosystem" around electric battery production, making Canada an attractive destination for EV investment with tax incentives, renewable energy access, and rare mineral deposits.

"Because of the choices our government has made over the past few years, Canada now ranks first, globally in Bloomberg's ranking of lithium-ion battery supply chains," Trudeau said.

Ontario Premier Doug Ford emphasized his province's leading role in the electric vehicle revolution, with six major automakers headquartered there.

In its recent budget, Trudeau's government introduced a new business tax credit, offering companies a 10 percent rebate on construction costs for new facilities in the electric vehicle

supply chain

.

Honda's new facility is estimated to receive a Can$2.5 billion federal tax credit, while the province is contributing another Can$2.5 billion in incentives.

Over the last four years, automotive and battery manufacturers have invested more than Can$31 billion in electric vehicle manufacturing across Canada.

Canada's strategy aligns with that of the neighboring United States, which has provided incentives for green industry through the Inflation Reduction Act.

Since 2021, Honda has made significant investments as it aims to become 100 percent electric in its automobile segment by 2040.

The new

Alliston

, Ontario facility will be the first to benefit from Canada's EV supply chain investment tax credit, joining recently announced Volkswagen and Stellantis battery plants.

Honda will also establish a cathode active material and precursor processing plant, as well as a separator plant, through joint ventures with chemical companies POSCO Future M and Asahi Kasei to complete its local EV supply chain.