Japanese automaker Honda is reportedly considering building its next electric vehicle factory in Canada in a multibillion-dollar project that could include producing its own batteries by 2028.
Estimated at around 2 trillion yen (almost 14 billion dollars), it would be one of the manufacturer’s most important investments, according to an article in the Japanese newspaper Nikkei published on Sunday.
Without confirming them, the Canadian Minister of Industry, François-Philippe Champagne, welcomed this “information” that demonstrates “Canada’s growing reputation as an ecological supplier of choice and a world leader in electric vehicles.”
Honda is considering several sites, including near one of its factories in Ontario, Nikkei said, adding that the manufacturer should make a decision before the end of the year for production to begin in 2028.
Billions in subsidies to attract investors
Canada has made considerable efforts in recent years to attract players in the electric vehicle sector, touting its tax incentives, clean energy and many rare minerals.
The Canadian strategy is in line with that of its first trading partner, the United States, whose major climate plan called the “Inflation Reduction Act” (IRA) provides billions of dollars in subsidies for green industries.
Honda also plans to build its first electric vehicle factory in North America in the state of Ohio in partnership with LG Energy with production planned for 2026.
Honda is ambitious in terms of electrification
Since 2021, the manufacturer has set the ambitious goal of being 100% electric in its automotive segment by 2040, and has planned colossal investments to achieve it.
However, at the end of October, the Japanese group and its American partner General Motors gave up joint production of “affordable” electric vehicles whose commercialization was to begin in 2027, a joint project announced last year.
Source: BFM TV
