Japanese automaker Honda announced on Thursday that it will significantly increase its investment in electric vehicle (EV) development, aiming to double its funding to a staggering $65 billion by 2030. This represents a substantial increase from the previous allocation of 5 trillion yen earmarked for EV technology during the same period. Honda’s decision underscores its commitment to shaping the future of mobility and capturing a significant share of the rapidly growing EV market.
Prime Minister Justin Trudeau and Ontario Premier Doug Ford visited Alliston, Ontario to announce a major investment in Honda’s electric vehicle production. The event highlighted Canada’s commitment to clean energy and job creation in the automotive sector.
Honda is building an electric vehicle battery plant in Alliston, Ontario as part of a $15-billion investment that includes retooling its assembly plant in Alliston to produce fully electric vehicles. The project also includes two key battery parts facilities located elsewhere in Ontario. There will likely be some capital investment from at least one level of government, but the deal does not involve production subsidies. Instead, the federal government has proposed in its recent budget a 10 per cent Electric Vehicle Supply Chain investment tax credit, which Honda could claim on top of an existing 30 per cent Clean Technology Manufacturing Investment tax credit.
Honda’s upcoming announcement of a multi-billion dollar investment in Ontario’s electric vehicle (EV) sector is a major milestone in Canada’s automotive industry. The deal is expected to be the largest in Canadian history, surpassing Volkswagen’s recent $7 billion battery plant investment. Honda’s plans include assembling EVs and establishing a supply chain for EV components in the province. This investment is a significant boost to Canada’s efforts to become a leader in the EV sector and meet its carbon emissions reduction targets.
The federal government and Ontario will announce a multibillion-dollar deal with Honda Motor Co. Ltd. this week in a move that will create a comprehensive electric vehicle chain in the province. The agreement includes a battery manufacturing facility, a retooled car assembly plant, and facilities for cathode materials and separator components. The investment is expected to surpass other electric-vehicle deals in Ontario, including the $7-billion Volkswagen EV plant in St. Thomas, Ont.
