Honda Canada wants to build an electric vehicle battery plant and produce electric vehicles at its factory in Alliston, in the Canadian province of Ontario.
According to local government officials, the deal could be worth double what Volkswagen announced last year.
Ontario Premier Doug Ford and Economic Development Minister Vic Fedeli have suggested that the project is worth 14 to 15 billion Canadian dollars, which is about 10 to 11 billion US dollars.
Volkswagen’s battery subsidiary PowerCo plans to invest 7 billion Canadian dollars in its above-mentioned battery plant in St Thomas by 2030.
But back to Honda: Japanese media previously reported that Honda is looking to build its own batteries in Canada. According to that information, the new plant could go into operation by 2028.
Reuters reports, citing insiders, that the carmaker will build batteries and process cathode material needed for the latter. EV production will take place at the existing auto manufacturing facility in Alliston.
It would be the third EV battery plant in Ontario, following the announcements of PowerCo and Stellantis and LGES. The latter are building a factory in Windsor.
Both projects received hefty subsidies, so it is safe to assume that Honda will as well. Moreover, the Canadian government just introduced a new investment tax credit, giving companies 10 per cent off the costs of setting up new buildings to house key segments of the EV supply chain.
