Honda considers $14 billion plan for EV production plant in Canada: Report

Honda Motor Co is considering building an electric vehicle plant in Canada in a near-2-trillion-yen ($13.83 billion) project that could possibly include in-house production of batteries, Japan’s Nikkei news group reported on Sunday.

The project could be one of Honda’s largest investments, the report said.

Honda did not immediately respond to a Reuters request for comment.

Canada’s industry minister’s office said in a statement to Reuters that reports about Honda looking to make a significant investment in Canada speaks to the quality of the country’s workforce and the strength of its industry.

“It is a testament to Canada’s growing reputation as a green supplier of choice and global EV leader,” the spokesperson said.

The Japanese automaker is looking at multiple potential sites for the plant, including next to an existing automobile factory in Ontario, Nikkei said, adding that Honda expects to come to a decision by the end of the year and the new plant could start as soon as 2028.

Honda already has plans to begin production and sales of EVs in North America in 2026, based on its new Honda e:Architecture.

The automaker, with partner LG Energy Solution, in 2022 announced Ohio as the site of a planned $4.4 billion joint-venture battery plant.

In October 2023, Honda and General Motors said they were scrapping a plan to jointly develop affordable electric vehicles, a year after they agreed to work together in a $5 billion effort to try to beat Tesla in sales.

First Published: Jan 07 2024 | 11:52 PM IST