Honda plans for an electric vehicle and battery factory in Canada
Japan-based automobile manufacturer Honda announced that it will establish an 11 billion dollar electric vehicle and battery factory in Canada.
Honda Motor has announced plans to invest C$15 billion ($11 billion) in new electric vehicle and battery manufacturing facilities, as well as existing facilities in Ontario, its largest investment in Canada.
The investment, announced by company executives and Canadian Prime Minister Justin Trudeau, signals Honda’s expectation of further growth in electric vehicle demand in North America. Like other Japanese auto companies, Honda joined electric vehicles relatively late and is now struggling to better compete with its fast-moving Chinese rivals.
While operations are aimed to start in 2028, it is estimated that the annual production capacity will be a maximum of 240 thousand electric vehicles and 36 gigawatt hours for batteries.
Although global electric vehicle demand has slowed, Honda executive Shinji Aoyama told reporters that the supply network will help Honda meet its goal of all North American sales being electric or fuel cell vehicles by 2040.