Honda Is Planning To Open Its Next EV Factory In Canada
Last Updated: January 10, 2024, 10:00 IST
Honda Is Planning To Open Its Next EV Factory In Canada. (Photo: TOI)
Honda plans a $13 billion electric vehicle (EV) plant, potentially in Canada, part of its global EV push with battery production by 2028.
In a major development, Honda Motor Co. is gearing up to construct its brand new electric vehicle (EV) plant in a different country with a potential investment of over $13 billion.
As per the latest reports, the Japanese automaker is considering building its next EV factory in Canada as a part of its multi-billion-dollar project, which might also include producing its batteries by 2028.
According to Japan’s Nikkei newsgroup, the substantial project could represent Honda’s most significant investment. However, the company is yet to make an official comment on the same, citing its inability to disclose any information at the moment.
Notably, this comes at a time when Honda, Japan’s second-largest automaker, has been looking forward to ramping up the sale of its electric vehicles. Earlier in 2021, Honda had set an ambitious target for its auto sector of 100 per cent EV production by 2040, as reported by HT.
The report further suggests that the company is exploring various locations for the plant, specifically considering its proximity to an existing factory in Ontario. A final decision on the matter is expected by the year’s end, while the new plant is likely to commence as early as 2028.
Reacting to the news, Canadian industry minister Francois-Philippe Champagne said that it reflects the country’s growing reputation as a leader in attracting green investment in the auto industry.
Honda’s Existing Plans
The Japanese automaker has existing plans to initiate EV production and sales in North America by 2026, based on its new e-architecture. Collaborating with LG Energy Solution, Honda had previously chosen Ohio as the site for a planned $4.4 billion joint-venture battery plant in 2022. Later in 2023, Honda and General Motors scrapped their joint plan to develop affordable EVs, a year after their $5 billion collaboration.
While EV sales have slowly gone down in the United States amid rising interest rates, Honda seemingly looks forward to changing that trend. US President Joe Biden’s administration has also set a goal of having about 50 per cent of EV vehicles in all its new vehicle sales by 2020. On the other hand, while Honda reportedly eyes a new EV factory in Canada, PM Justin Trudeau has recently also proposed a target of making at least 60 per cent of the new vehicles sold in the country zero-emission by the same year.
Last Updated: January 10, 2024, 10:00 IST
Honda Is Planning To Open Its Next EV Factory In Canada. (Photo: TOI)
Honda plans a $13 billion electric vehicle (EV) plant, potentially in Canada, part of its global EV push with battery production by 2028.
In a major development, Honda Motor Co. is gearing up to construct its brand new electric vehicle (EV) plant in a different country with a potential investment of over $13 billion.
As per the latest reports, the Japanese automaker is considering building its next EV factory in Canada as a part of its multi-billion-dollar project, which might also include producing its batteries by 2028.
According to Japan’s Nikkei newsgroup, the substantial project could represent Honda’s most significant investment. However, the company is yet to make an official comment on the same, citing its inability to disclose any information at the moment.
Notably, this comes at a time when Honda, Japan’s second-largest automaker, has been looking forward to ramping up the sale of its electric vehicles. Earlier in 2021, Honda had set an ambitious target for its auto sector of 100 per cent EV production by 2040, as reported by HT.
The report further suggests that the company is exploring various locations for the plant, specifically considering its proximity to an existing factory in Ontario. A final decision on the matter is expected by the year’s end, while the new plant is likely to commence as early as 2028.
Reacting to the news, Canadian industry minister Francois-Philippe Champagne said that it reflects the country’s growing reputation as a leader in attracting green investment in the auto industry.
Honda’s Existing Plans
The Japanese automaker has existing plans to initiate EV production and sales in North America by 2026, based on its new e-architecture. Collaborating with LG Energy Solution, Honda had previously chosen Ohio as the site for a planned $4.4 billion joint-venture battery plant in 2022. Later in 2023, Honda and General Motors scrapped their joint plan to develop affordable EVs, a year after their $5 billion collaboration.
While EV sales have slowly gone down in the United States amid rising interest rates, Honda seemingly looks forward to changing that trend. US President Joe Biden’s administration has also set a goal of having about 50 per cent of EV vehicles in all its new vehicle sales by 2020. On the other hand, while Honda reportedly eyes a new EV factory in Canada, PM Justin Trudeau has recently also proposed a target of making at least 60 per cent of the new vehicles sold in the country zero-emission by the same year.
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