The Japanese automaker plans to establish four EV-related plants in Ontario, Canada, adding to its existing factories in the United States, Mexico, and Canada.

The expansion will focus on Honda's facilities in Alliston, Ontario, where the company intends to build an innovative and environmentally responsible EV factory. Additionally, Honda plans to set up a standalone EV battery plant in the same location. These new facilities will bolster Honda's existing manufacturing capabilities in the region.

As part of its expansion strategy, Honda is also seeking partnerships through two joint ventures. The first joint venture will involve constructing a plant for processing cathode active materials in collaboration with POSCO Future M, a South Korean battery material and chemical company. The second joint venture will be established with Asahi Kasei to manufacture battery separators.

While specific locations for the joint ventures have not yet been announced, Honda aims to start producing EVs in Ontario by 2028. The new assembly plant is expected to have an annual capacity of up to 240,000 EVs, while the battery plant is planned to have an annual output of 36 GWh.

This investment in EV manufacturing by Honda is in addition to the $700 million already spent on retooling factories in Ohio, United States, to support electrification. Furthermore, Honda has a joint venture battery factory with LG Energy Solutions in Ohio, the cost of which has risen to $4.4 billion. The company expects to commence production of an electric sedan, showcased at CES earlier this year, in Ohio by late 2025.

Honda's CEO, Toshihiro Mibe, emphasized that these investments contribute to the company's progress towards achieving its 2050 carbon neutrality goal. With the support of the governments of Canada and Ontario, Honda aims to strengthen its EV supply system and capability to meet the anticipated rise in EV demand in North America.

Currently, Honda offers a single EV for the US market, the Honda Prologue, which utilizes one of GM's Ultium platforms. In addition, the company is collaborating with Sony to develop an EV under the Afeela brand.

Honda's ambitious investment in EV manufacturing underscores its commitment to sustainability and aligning with the growing global shift towards electric mobility.