2024-01-08 03:13:11
Japanese media reports that automaker Honda might invest up to $18.4 billion to set up an electric vehicle factory in Canada.
The media Nikkei Asia says the company is juggling the idea of building a vehicle factory and a battery factory in hopes of catching up in the electric vehicle market.
Several locations would be studied by Honda as part of this project, including the one where its Alliston, Ontario factory is already located. A decision would be made by the end of the year, according to Nikkei Asia.
A spokesperson for Honda Canada said the company is considering different initiatives to increase production of electric vehicles, but he did not confirm the news reported by Nikkei Asia.
“In order to achieve our goal of 100% electrified vehicles by 2040, we are considering various options to increase local production capacity, but we have nothing further to share at this time,” he said. declared John Bordignon in an email.
A spokesperson for federal Industry Minister François-Philippe Champagne did not confirm whether negotiations were underway between the company and the government.
The minister said the Japanese media article demonstrates “Canada’s growing reputation as a green partner and a world leader in the manufacturing of electric vehicles.”
“The news that Honda is considering making a significant investment in Canada is a testament to the quality of our workforce and the strength of our industry,” he added.
In his article, Nikkei Asia points out that the abundance of renewable energy is one of the reasons why Honda is considering setting up a new factory in Canada.
In December, the federal government confirmed that all new passenger vehicles sold in Canada in 2035 must be electric.
Honda has also already concluded an agreement with LG Solution to build a battery factory for electric vehicles in Ohio, in the United States. But in Canada, Honda might choose to go it alone, according to Nikkei Asia.
LG has already partnered with Stellantis, another automaker, to build a battery factory in Windsor, still in Ontario. This is one of several major investments in electric vehicles that have been announced in recent months in Canada, most of which are associated with significant subsidies.
Volkswagen is also building a battery factory in St. Thomas, Ontario, and Northvolt is building one regarding 30 kilometers east of Montreal. The three factories are expected to cost tens of billions of dollars in subsidies linked largely to production volumes.
Honda announced in 2022 that it would invest $1.38 billion to upgrade its Alliston plant, in part to prepare it to become the main plant for its CR-V hybrid crossover vehicle.
The company is only launching sales of its first fully electric vehicle in Canada this year, the Prologue, with limited quantities expected during the first year of production.
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