Honda Canada is set to embark on the construction of an electric vehicle (EV) battery plant adjacent to its auto manufacturing facility in Alliston, Ontario. The facility will also serve as a production hub for fully electric vehicles. Reliable sources with knowledge of the project confirmed the plans but refrained from disclosing specific financial details.
Ontario Premier Doug Ford announced at a First Nations conference that an announcement regarding a new agreement would be made this week, emphasizing that it would surpass the Volkswagen deal announced last year in terms of magnitude. The EV battery plant in St. Thomas, Ontario, associated with that deal carries a substantial capital investment of $7 billion.
Honda’s facility in Alliston will join Volkswagen and Stellantis LG’s plant in Windsor, Ontario, as the third electric vehicle battery plant in the province. While the previous two projects benefited from billions in government subsidies to remain competitive with those offered under the United States’ Inflation Reduction Act, Honda’s project is anticipated to encompass capital commitments and tax credits.
