Summary
– Honda plans to build a comprehensive EV value chain in Ontario, Canada
– The company will invest CAD$15 billion in this initiative
– Honda aims to have 100% battery-electric and fuel cell electric vehicles in its fleet by 2040
– Electric vehicle production is expected to begin in 2028 with a capacity of 240,000 EVs per year
– Honda is collaborating with the governments of Canada and Ontario for support on this initiative
Article
Honda has announced plans to build a comprehensive electric vehicle (EV) value chain in Ontario, Canada, in order to strengthen its EV supply system and capability to meet future EV demand in North America. This initiative will involve an investment of approximately CAD$15 billion (USD$11 billion), including investments by joint venture partners. Honda Canada President and CEO Jean Marc Leclerc described the investment as historic and a recognition of the long-term attractiveness of the Canadian electric vehicle manufacturing ecosystem.
The announcement is part of Honda’s aggressive electrification plans for its vehicle fleet, with the goal of having battery-electric and fuel cell electric vehicles represent 100% of its vehicle sales by 2040. The company aims to progress to sales of 40% by 2030 and 80% by 2035 in all major markets, including North America. In support of these goals, Honda has made investments in the U.S., including re-tooling existing auto and powertrain plants for EV production and launching a joint venture with LG Energy Solution to mass produce lithium-ion batteries.
Honda is evaluating the requirements to build an innovative and environmentally responsible EV plant and EV battery plant in Alliston, Ontario. The proposed EV value chain will also include a cathode active material and precursor processing plant through a joint venture partnership with POSCO Future M Co., Ltd., and a separator plant through a joint venture partnership with Asahi Kasei Corporation in additional Ontario communities. The company expects electric vehicle production to begin in 2028, with the EV plant having a production capacity of 240,000 EVs per year and the EV battery plant having a capacity of 36 GWh per year.
Global CEO of Honda, Toshihiro Mibe, stated that Honda is making progress in its global initiatives to achieve carbon neutrality by 2050. This move to establish an EV value chain in Canada follows the company’s initiative to establish an EV production system capability in the U.S. Honda will work in collaboration with the governments of Canada and Ontario, accessing performance-based initiatives available through the federal government’s Investment Tax Credits and provincial direct and indirect incentives.
The company has begun the process of evaluating the scope of its investment and completing negotiations with joint venture partners, with plans to finalize the work within the next six months. Honda is committed to strengthening its EV supply system and capability to meet the expected increase in EV demand in North America. The establishment of an EV value chain in Canada represents a significant step towards achieving Honda’s electrification goals and furthering its contribution to a sustainable future in the automotive industry.
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