, Ltd. has unveiled its plans to establish a comprehensive EV value chain in Canada. The company is set to invest approximately CAD$15 billion (USD$11 billion), including contributions from joint venture partners, to strengthen its EV supply system and capability.

As part of this initiative, Honda will evaluate the requirements for constructing an innovative and environmentally responsible Honda EV plant and a standalone Honda EV battery plant in Alliston, Ontario. Additionally, the proposed EV value chain will incorporate a cathode active material and precursor processing plant through a joint venture with POSCO Future M Co., Ltd. and a separator plant through a joint venture with Asahi Kasei Corporation.

It is anticipated that electric vehicle production will commence in 2028. Once fully operational, the EV plant will have an annual production capacity of 240,000 EVs, while the EV battery plant will be capable of producing 36 GWh per year. This ambitious endeavor by Honda is expected to create a minimum of 1,000 new jobs, ensuring a positive impact on employment opportunities in the region.

Furthermore, Honda's investment in these new facilities will not only secure the existing employment level of 4,200 associates at its two manufacturing facilities in Ontario but will also generate significant spinoff jobs across various sectors, including construction.

Honda has already initiated the process of evaluating the scope of its investment and is engaged in negotiations with its joint venture partners. Further details are expected to be finalized within the next six months.

To support this groundbreaking project, Honda is collaborating with the Canadian and Ontario governments, aiming to drive innovation in low-emissions manufacturing and leveraging performance-based initiatives available through the federal government's new Investment Tax Credits and provincial incentives.

This announcement comes as Honda strives to achieve its long-term goal of carbon neutrality by 2050. As part of its North American EV strategy, the company has already transformed its auto production plants in Ohio into an EV Hub, investing USD$700 million and setting up a joint venture EV battery plant with LG Energy Solution.

The Ohio EV Hub will serve as a foundation for future EV and EV battery production, sharing expertise with the newly planned EV assembly and battery plants in Ontario, Canada, thereby establishing a robust EV value chain that spans all aspects of production.

The establishment of a comprehensive EV value chain in Canada reflects Honda's recognition of the country's attractive EV manufacturing ecosystem. By capitalizing on the abundance of clean energy and available resources in Canada, Honda aims to create a stable supply system for batteries and enhance the cost competitiveness of its EVs.

With a keen eye on sustainable practices, Honda also aims to explore secondary use and recycling of batteries, thereby contributing to the realization of a carbon-neutral society and ensuring low-carbon value creation throughout the entire battery life cycle.

Toshihiro Mibe, the Global CEO of Honda, expressed his enthusiasm for the project, highlighting Honda's commitment to carbon neutrality goals and consolidating their EV supply system to meet the increasing demand for EVs in North America. Jean Marc Leclerc, President and CEO of Honda Canada, emphasized the historic nature of this investment and its recognition of Canada's manufacturing excellence and potential in the electric vehicle sector.

The next six months will be crucial for Honda as it finalizes agreements and gears up for the implementation of its ambitious EV plans in Canada. With this significant investment, Honda aims to solidify its position in the rapidly evolving landscape of electric vehicles.

For more information and updates on this project, visit www.hondanews.ca.