Honda Doubles Down on Ontario in $15 Billion Electric Vehicle Blitz

In a blockbuster move to secure its electric vehicle future, Honda Motor Co. has unveiled an audacious $15 billion investment to construct a comprehensive EV ecosystem in Ontario, Canada. 

The Japanese automotive giant aims to build an all-new electric vehicle assembly plant and dedicated EV battery plant in Alliston by 2028, with projected annual capacities of 240,000 EVs and 36 gigawatt-hours respectively. But Honda's gambit goes far beyond just vehicle and battery production.

The company is forming joint ventures with South Korea's POSCO Future M Co. and Japan's Asahi Kasei Corporation to locally manufacture key EV battery materials and components like cathode active materials/precursors and separators.  

"Honda is making progress in our global initiatives toward the realization of our 2050 carbon neutrality goal," stated Toshihiro Mibe, Honda's Global CEO. "In North America, following the initiative to establish our EV production system capability in the U.S., we will now begin formal discussions toward the establishment of a comprehensive EV value chain here in Canada, with the support of the governments of Canada and Ontario."

The $15 billion investment, including contributions from partners, represents Honda's aggressive push to localize EV supply chains as it braces for an expected surge in North American demand for emissions-free vehicles over the next two decades. Honda aims to have battery EVs and fuel cell EVs make up 100% of its global sales by 2040.

"We will strengthen our EV supply system and capability with an eye toward a future increase in EV demand in North America," Mibe added.

Beyond sustaining over 4,200 existing manufacturing jobs in Ontario, the EV investment is projected to create at least 1,000 new direct positions, with the potential for thousands more spin-off roles across the construction sector and supplier companies.

"Honda of Canada Manufacturing is one of the premier automotive manufacturing facilities in the world and for nearly forty years, our work has been guided by determination, innovation, and a relentless drive to evolve," said Jean Marc Leclerc, President and CEO of Honda Canada Inc. "Today's announcement is a historic investment by a manufacturer in the Canadian auto industry. It proudly honours the highly skilled associates who have earned a global reputation for manufacturing excellence."

Honda said it chose Ontario due to the region's attractiveness for EV production, including abundant natural resources, clean energy sources and federal/provincial government incentives aimed at promoting sustainable automotive manufacturing and innovation.  

The company will work closely with Canadian authorities over the next six months to finalize investment details and access newly introduced tax credits, grants and programs supporting green vehicle initiatives.

Key targets include securing ethical raw material sourcing, implementing low-carbon production processes across the supply chain and establishing closed-loop battery recycling capabilities to extract maximum value.

Honda's blockbuster Ontario investment complements the $4.4 billion joint EV battery venture it established with LG Energy Solution in Ohio, positioning both regions as dual pillars of the automaker's electrification strategy for North America.

As legacy automakers race towards an electric future, Ontario has rapidly emerged as a new battleground where they jockey to localize supply chains, leverage renewable energy resources and capitalize on generous public incentives. Honda's vertically integrated EV ecosystem could be a powerful competitive advantage if executed successfully.

"This Canadian EV value chain will be a key driver for achieving our carbon neutrality goals," Mibe stated, doubling down on Honda's multibillion-dollar Ontario wager.