Honda may build an electric vehicle plant in Canada that could even include the in-house production of batteries, according to a new report. It is claimed the carmaker will look to decide by the end of 2024 and could commence production at the new site as early as 2028.
North America is an incredibly important market for Honda, accounting for approximately 40% of its global sales. The company has already committed to begin EV and battery production at an Ohio plant in 2026 and would be very willing to build a second EV plant in North America. It is believed to be at several potential sites, one of which is likely a plant located next to an existing plant operating in Ontario.
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Nikkei Asia understands that Honda could spend up to 2 trillion yen ($14 billion) on the project. Canadian officials are expected to meet with Honda representatives this week to discuss the plans.
It is understood that Canada’s plan to ban the sale of new gasoline and diesel-fueled passenger vehicles in 2035 has sparked Honda’s interest in it. Additionally, the country has lots of renewable energy sources, helping to reduce its carbon footprint per unit of electricity that is generated.
While Honda’s sales targets for its electric cars are not as ambitious as those of some of its competitors, Honda aims for electric cars to account for 40% of its sales in North America by 2030 and 80% by 2035.
Its forthcoming EV plant in Ohio is being established alongside South Korean battery manufacturer LG Energy Solution. Interestingly, the brand is thought to be interested in manufacturing batteries in Canada on its own but could partner with one of the firms it is currently investigating new technologies with, including solid-state batteries.
When asked via The Globe and Mail about the company’s plans for a Canadian electric vehicle plant, Honda spokesman John Borignon said the company is “considering a number of projects as we move into the era of electrification. “