Summary
– Honda plans to invest $11 billion in EV manufacturing in Canada, with an expected start date of 2028 for a plant in Ontario
– The plant would produce 240,000 EVs and 36 gigawatt-hours of batteries per year, creating 1,000 new jobs
– Honda is considering partnerships with South Korea’s POSCO and Japan’s Asahi Kasei for battery material processing and separator plants
– Honda is developing solid-state EV batteries to enable more affordable small EVs by 2030
– Honda is also establishing an EV Hub in Ohio to retool plants and build a joint-venture battery plant with LG Energy Solution to produce 300,000 to 500,000 EVs annually
Article
Honda has announced plans to expand its EV supply chain into Canada, with a significant investment of $11 billion US. While the company has not yet committed to building an EV assembly plant in Canada, it has set an expected start date of 2028 for the plant. This facility would be capable of producing up to 240,000 EVs per year and 36 gigawatt-hours of EV batteries annually. The project is expected to create 1,000 new jobs in addition to maintaining the current workforce of 4,200 employees.
The proposed project in Canada also includes partnerships with South Korea’s POSCO for a battery materials processing plant and Japanese chemical giant Asahi Kasei for a joint-venture battery separator plant. Honda anticipates that the project will lead to “significant spinoff jobs” in the surrounding areas. While it is uncertain whether next-generation batteries will be utilized at the new plant, Honda is developing its own solid-state EV batteries, which it views as crucial for making small EVs more affordable by 2030.
In addition to its plans in Canada, Honda is also making strides towards EV mass production in the United States. The company is establishing an EV Hub in Ohio, where it will invest $700 million to retool three of its plants and construct a new $3.5 billion joint-venture battery plant with LG Energy Solution. These facilities will have the capability to produce both gasoline models and EVs on the same production line. The first plant in Marysville, Ohio, is expected to manufacture hundreds of EVs per day.
Honda’s Ohio EV Hub will be responsible for assembling EVs built on the company’s next-generation EV platform, which incorporates a new die-cast process using mega-casting machines. This technology is expected to surpass Tesla’s capabilities in Texas. The Ohio plants, based on battery capacity, are projected to produce between 300,000 to 500,000 EVs annually. Additionally, Honda will be producing EVs for Sony-Honda Mobility under a separate arrangement, with the vehicles branded as Afeela and featuring innovative in-car entertainment systems inspired by Sony’s expertise.
Overall, Honda’s expansion into Canada and increased focus on EV production in the United States signify the company’s commitment to staying competitive in the evolving automotive industry. By leveraging partnerships and investing in cutting-edge technologies, Honda aims to establish itself as a key player in the global EV market. The company’s strategic approach to manufacturing and innovation is aligned with its vision for a more sustainable and environmentally responsible future.
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