Like a rapper officially releasing a leaked diss track, Honda has dropped a long-awaited project that’s making waves throughout the industry.
What happened: Honda officially announced its $15 billion electric vehicle investment plan in Ontario, with designs to build four — count ’em, four — new EV plants in the province. The federal government touted the move as the “largest auto investment in Canada’s history.”
- The feds are expected to grant Honda up to $2.5 billion in tax incentives, including the brand-new EV Supply Chain investment tax credit.
- Ontario is also expected to chip in up to $2.5 billion, by covering certain costs for the plant and offering up cold hard cash.
Zoom in: Honda will build a full-fledged EV manufacturing plant that will crank out 240,000 vehicles a year and an accompanying battery plant in Alliston. The other two plants are a factory making cathode active materials (CAM) and a factory making separators, both of which help power EV batteries.
- The CAM plant is a joint venture with South Korea’s Posco Chemicals, while the separator plant is a venture with Japan’s Asahi Kasei. Neither have locations yet.
Why it matters: There’s been no shortage of EV announcements over the past year, but they have been focused largely on EV battery production. Honda’s plants will be the first ones to bring a fully integrated EV supply chain to Canada, from cathodes to chassis.
Yes, but: While EV sales continue to rise, broader interest appears to be on the decline. AutoTrader’s annual EV interest report found that 46% of Canadians were interested in buying an EV, down from 68% in 2022, mainly due to cost and performance concerns with current models.—QH
