Honda considers $14 billion plan for EV production in Canada

Honda Motor Co is considering building an electric vehicle plant in Canada in a near 2 trillion yen ($13.83 billion in USD) project that could possibly include in-house production of batteries, Japan’s Nikkei news group reported on Sunday.

The project could be one of Honda’s largest investments, the report said.

The Japanese automaker is looking at multiple potential sites for the plant, including next to an existing automobile factory in Ontario, Nikkei said, adding that Honda expects to come to a decision by the end of the year and the new plant to start as soon as 2028.

Honda did not immediately respond to a Reuters request for comment on the report.

Industry Minister François-Philippe Champagne did not confirm the report either, but said in a statement to Global News that it points to Canada’s position as a global leader in attracting major green investments in the auto sector.

“Reports about Honda looking to make a significant investment in Canada speaks to the quality of workforce and the strength of our industry,” the minister told Global News via email.

“It is a testament to Canada’s growing reputation as a green supplier of choice and global EV leader. We will continue to work tirelessly to position Canada’s auto sector for the 21st century economy,” he said.

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Honda already has plans to begin production and sales of EVs in North America in 2026, based on its new Honda e:Architecture.

The automaker, with partner LG Energy Solution had in 2022 announced Ohio as the site of their planned $4.4 billion joint-venture battery plant.

In October 2023, Honda and General Motors said they were scrapping a plan to jointly develop affordable electric vehicles (EVs), a year after they agreed to work together in a $5 billion effort to try to beat Tesla in sales.

–with files from Global News’ Carly Yoshida-Butryn.