As part of its strategy to establish eco-friendly EV and battery facilities in Ontario, Honda’s EV value chain will cover every stage of EV production in Canada, from sourcing primarily battery-related raw materials to manufacturing completed EVs.
Honda Motor Co. is set to establish a comprehensive EV value chain in Canada with a projected investment of approximately CAD$15 billion / US $11 billion (Rs 91,275 crore), which includes contributions from joint venture partners. This investment is aimed at enhancing its EV supply system and boosting its capabilities in anticipation of a surge in EV demand across North America. The Japanese automaker has initiated evaluations to construct a cutting-edge, environmentally sustainable Honda EV plant alongside a dedicated Honda EV battery facility in Alliston, Ontario. Additionally, the planned value chain will feature a cathode active material and precursor (CAM/pCAM) processing plant through a partnership with POSCO Future M Co and a separator plant in collaboration with Asahi Kasei Corporation, with further details to be announced in the respective communities in Ontario.
Honda anticipates the commencement of EV production by 2028. Once operational, the EV plant is expected to produce 240,000 EVs annually, while the battery facility will have a capacity of 36 GWh per year. Besides maintaining the current workforce of 4,200 associates at its two existing manufacturing sites in Ontario, Honda projects the addition of at least 1,000 new jobs at the new EV and battery production facilities. This expansion is also expected to generate considerable ancillary employment opportunities, including in construction.
Honda’s North American EV Strategy:
Honda has committed to having battery electric vehicles (BEVs) and fuel cell electric vehicles (FCEVs) constitute 100% of its vehicle sales by 2040. In pursuit of this target, it plans to persist in offering electrified products globally, particularly in its largest market, North America.
As an initial step towards this electrification aim, Honda has designated its existing automobile manufacturing facilities in Ohio, USA, as its central EV Hub. This hub will oversee the production and retooling of EVs, including an investment of USD$700 million and the construction of a joint venture EV battery plant with LG Energy Solution, anticipated to involve an investment of US$4.4 billion.
The Ohio EV hub will lay the groundwork for future EV and battery production, facilitating the sharing of knowledge and expertise with other Honda facilities in North America, including the new assembly and battery plants in Ontario, Canada. EV production is expected to begin at the Marysville Auto Plant by late 2025.
In a subsequent phase, Honda aims to leverage the expertise acquired at the Ohio EV Hub and Canada’s rich resources and clean energy to establish a stable, cost-effective battery supply system. This initiative will encompass all stages of EV production in Canada, from raw material procurement, particularly for batteries, to the final assembly of EVs.
Moreover, Honda is focusing on the secondary use and recycling of batteries to promote low-carbon value creation throughout the entire battery lifecycle. Through these efforts, Honda aspires to build a highly profitable business infrastructure and contribute towards achieving a carbon-neutral society.
