Canada courting Honda to build next EV plant

Officials from Honda, LG Energy Solution and Ohio state and local community leaders participate in the official groundbreaking for the new joint venture EV battery facility in Fayette County, Ohio, US. (Photo credit: Honda)

First reported by Japanese news outlet Nikkei Asia, Honda expects to meet with Canadian officials as early as this week to discuss a potential CAD$18.5 billion (US$14 billion) investment to build electric vehicles (EV) and their components in the North American country.

The news group reported that Honda is looking at multiple sites for the plant. One locale is in Alliston, Ontario; next to an existing auto factory.

It would be the third major EV and EV-component site on the continent for Honda, as it announced a US$3.5 billion investment – in 2022 – for a manufacturing facility in Fayette County, Ohio, US. The Ohio plant is a joint venture between Honda and LG Energy Solution of South Korean and will produce advanced lithium-ion battery modules.

Construction began in 2023 and is expected to finish at the end of this year.

In 2023, Honda also announced a US$700 million investment into its existing Marysville, Ohio, location. The Marysville site is Honda’s first American auto plant (built in 1982) and the automaker’s first plant in North America to transition to EV production.

Honda and Canadian leadership offered little comment in the wake of the report with one government official stating Canda will consider all negotiations with the automaker based on merit.