Honda is set to enhance its commitment to sustainable mobility with the announcement of a multi-billion dollar investment to develop a new electric vehicle (EV) and battery manufacturing hub in Alliston, Ontario. This initiative marks a significant expansion of Honda’s long-standing presence in Canadian manufacturing and innovation.
Scheduled for announcement this Thursday at Honda’s existing facility in Alliston, the project underscores Honda’s strategy to lead in the transition to electric mobility. The new development will include facilities for processing cathode active materials, battery manufacturing, and the assembly of battery-powered vehicles.
This venture is supported by the recent introduction of an EV supply chain investment tax credit in last week’s federal budget, proposing a 10 percent tax credit for investments in key areas such as assembly, battery production, and cathode active material production. This policy likely played a crucial role in securing Honda’s investment.
Flavio Volpe, President of the Automotive Parts Manufacturers’ Association, commented on the development, stating, “Honda does not make speculative term bets. In almost 40 years of making cars in Canada without failure or retreat, a Honda supply contract is extremely bankable.”
The announcement also aligns with recent federal and provincial government efforts to bolster the EV industry in Canada, following significant agreements with other major players in the EV market including Northvolt, Volkswagen, and Stellantis-LGES.
Further details regarding the scope of the investment and potential government subsidies will be disclosed during the upcoming announcement.
About Honda: Honda is a global leader in mobility, renowned for its innovative automotive solutions. With a history of excellence in automotive engineering and a commitment to environmental stewardship, Honda continues to drive advancements in automotive technology and sustainable transportation.