Honda Canada is gearing up to establish a significant electric vehicle battery manufacturing facility near its Alliston auto plant, according to insiders. The new plant will also start producing electric vehicles, marking a major expansion in Honda’s commitment to electric mobility.
The initiative, which is supported by both the federal and Ontario governments, will be officially announced later this week. Details about the financial aspects of the deal are still under wraps, but it is expected to significantly exceed the scale of a previous Volkswagen project in terms of investment.
Ontario Premier Doug Ford hinted at the upcoming announcement during a speech at a First Nations conference, suggesting that the new project will be “double the size” of the Volkswagen initiative, which was also a major investment in the region.
This new Honda facility will be Ontario’s third electric vehicle battery plant, joining others by Volkswagen and Stellantis LG in Windsor. The deal is likely to include substantial capital investments and may benefit from recent government tax credits aimed at boosting Canada’s EV production capabilities.
These developments follow extensive negotiations and planning sessions between Honda executives and Ontario government officials, aimed at bolstering the province’s position as a leader in electric vehicle production and technology.