Honda Announced a Blockbuster Investment in Canadian EV Production Facilities


honda announced a blockbuster investment in canadian ev production facilities

Like Toyota, Honda has been slower than most to jump into the EV pool with both feet, but it now appears the automaker is ready to take a dive. It recently announced a significant investment in four new EV facilities in Canada that will deliver almost a quarter-million new EVs each year.

Honda will build an in-house battery factory in Alliston, Canada. The factory is slated to produce up to 240,000 EVs annually for the U.S. and Canadian markets. Battery production capacity will reach 36 GWh, and the facilities are scheduled to be online in 2028.

The investment will create Canada’s first end-to-end EV supply chain and bring a significant manufacturing presence to Ontario. Prime Minister Justin Trudeau called the move a game-changer for Canada. It will give Honda a significant leg up to build new EVs near the end of the 2020s. Additionally, the manufacturing system will cut the automaker’s costs by more than 20 percent.

This announcement is notable because it comes at a time when many automakers are backtracking into developing more hybrid and plug-in hybrid units as EV demand slows. Honda is already well-positioned with hybrid vehicles, with several of its most popular models electrified. Its cautious approach, which, along with Toyota’s, was criticized for being too slow, is now proving prescient, as it’s avoided the somewhat embarrassing course corrections needed from Ford, GM, and others.

[Image: Honda]

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