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Honda Motor Mulling Construction of EV Plant in Canada; Also Eyeing In-House Production of Vehicle Batteries

Reuters file photo
A Honda SUV e:Prototype electric vehicle is seen in Shanghai in April 2021.

Honda Motor Co. is considering building an electric vehicle plant in Canada, The Yomiuri Shimbun has learned.

The company is also considering in-house production of automotive batteries for EVs at the plant, aiming to start operations by around 2030. Honda wants to strengthen its production system in North America, which it regards as an important market, the sources said.

The new plant in Canada will be Honda’s second production base in North America, as the company has already announced a plan to begin EV production in Ohio in 2026.

A large investment is expected in the new plant. Honda is considering building the factory near its finished vehicle plant in Ontario.

Honda aims to increase the combined share of electric and fuel cell vehicles to 40% of its new unit sales in North America by 2030, and to 100% by 2040.

The company is also considering in-house production of automotive batteries, a core component of the vehicles.

In the United States, Honda plans to produce the batteries jointly with LG Energy Solution Ltd., a major South Korean battery maker.

The Canadian government has announced a policy to ban the sale of gasoline and other engine-powered vehicles by 2035. The U.S. government is also offering tax incentives of up to $7,500 (¥1 million) for EVs whose vehicles and batteries were manufactured in North America.

Honda hopes to increase EV production in Canada to boost EV sales in North America as a whole.