Honda Motor Co is reportedly exploring the possibility of establishing an electric vehicle (EV) plant in Canada, marking a substantial investment estimated at nearly 2 trillion yen ($13.83 billion), as revealed by Japan’s Nikkei news group. This potential venture could rank among Honda’s most substantial financial commitments, although the company has not officially commented on the matter.
While Honda has been relatively slow in embracing electric vehicle sales, the consideration of a major investment in Canada underscores the nation’s appeal in terms of workforce quality and industrial strength. Canada’s industry minister’s office expressed that Honda’s reported interest in a substantial investment reflects the country’s reputation as an environmentally conscious supplier and a global leader in electric vehicles.
As of the first nine months of 2023, electric vehicles constituted less than 0.5% of Honda’s global sales, with the company having been somewhat reserved in fully embracing the electric vehicle market. Nevertheless, the potential construction of an EV plant in Canada signifies Honda’s acknowledgment of the growing importance of electric mobility.
Honda is reportedly evaluating various locations for the plant, with one potential site being adjacent to an existing automobile factory in Ontario. The decision-making process is expected to conclude by the end of the year, and if the project proceeds, the new plant could commence operations as early as 2028.
It’s worth noting that Honda has previously outlined plans to initiate the production and sale of electric vehicles in North America by 2026, based on its newly developed Honda e:Architecture. Additionally, in collaboration with LG Energy Solution, Honda announced in 2022 a $4.4 billion joint-venture battery plant in Ohio, reflecting its commitment to advancing battery technology.
However, it’s essential to recognize that in October 2023, Honda and General Motors decided to abandon their joint plan to develop affordable electric vehicles, a year after initially joining forces in a $5 billion effort to compete with Tesla. This decision underscores the complexities and uncertainties within the rapidly evolving electric vehicle landscape.
