Honda could soon make EVs and batteries in Canada

Honda could build an electric car plant in Canada and even produce its own batteries there, Japanese media reports. It would be the carmaker's second production facility in North America.

According to the Japanese business newspaper Nikkei, the total investment for the project could amount to 2 trillion yen (14 billion US dollars). Honda is looking at several potential locations, including next to an existing car factory in the Canadian province of Ontario.

Honda will finalise its decision by the end of 2024. The new plant will then go into operation in 2028.

The planned Canadian electric vehicle plant would be Honda’s second in North America. The carmaker already wants to manufacture batteries with LG Energy Solutions in the US state of Ohio from 2025. The factory near Jeffersonville will have an annual capacity of 40 GWh. Honda will also convert its existing Honda plants in Ohio, the Marysville Auto Plant (MAP), East Liberty Auto Plant (ELP) and Anna Engine Plant (AEP), with the aim of starting production and sales of electric cars based on the new Honda e:Architecture in 2026.

The background to Honda’s considerations is the electric vehicle quotas finalised by the Canadian government at the end of 2023. It mandates an EV quota for passenger cars of at least 20 per cent from 2026. It will increase to 60 per cent from 2030 and 100 per cent from 2035.

According to Nikkei, North America accounts for roughly 40 per cent of Honda’s global sales. Most of the vehicles sold there still have combustion engines. However, the Japanese want electric cars to account for 40 per cent of sales in North America by 2030 – and even 80 per cent by 2035.

To reach its goal, Honda needs to pick up the pace. The 2022 collaboration with GM to build affordable electric cars for the North American market was discontinued in October. At the time, Honda CEO Toshihiro Mibe cited cost and range challenges as reasons for cancelling the collaborative plan with GM.

nikkei.com

1 Comment

about „Honda could soon make EVs and batteries in Canada“

Bill Johnson

10.01.2024 um 02:28

To the best of my knowledge Honda doesn't actually make any pure EVs yet, "electrified" ICEs aren't pure EVs. The Canadian government is wrong to consider them ZEVs (zero emissions vehicles) as they are emissions producing in that they use ICE engines for most of their usage. That being said, the idea that they could be "soon" is just plain rubbish. First of course there is the money grab from the Canadian taxpayer who shouldn't be touching this deal with a continent wide pole. There is absolutely no way they can build a factory and have it up and running BEFORE they go bankrupt, they are too far behind the EV eight ball now to ever make it that far. Also, for $14B US ($18B+CAD) they should be able to build 2 factories including battery plants if they had the right engineers. Canada should be going after the FF industry and take back the incentives and subsidies they've been providing over the years. Who is in who's pocket here.