Canada's Finance Minister, Chrystia Freeland, revealed that she recently held discussions with representatives from Honda Motor about the potential establishment of a nearly 2-trillion-yen (US$13.7 billion) electric vehicle (EV) plant in Canada. Freeland emphasized Honda's significance as an investor in Canada and mentioned that various government officials from different departments have engaged in meetings with the Japanese automaker. According to a report by Japan's Nikkei news group, Honda is exploring multiple sites for the plant, including one adjacent to an existing automobile factory in Alliston, Ontario. A decision on the location is expected by the end of 2024, with the new facility possibly operational by 2028.
Canada has actively pursued investments across the EV supply chain to secure its manufacturing sector in Ontario amid global efforts to reduce carbon emissions. Prime Minister Justin Trudeau has expressed interest in targeted investments, following substantial subsidies provided to companies like Volkswagen and Stellantis-LG Energy Solution for their planned battery gigafactories. Honda, Japan's second-largest carmaker, recently announced plans to introduce a new electric vehicle series from 2026, signaling its commitment to catching up with global competitors in the electric vehicle market. Despite being relatively slow to adopt electric vehicles, Honda and LG Energy Solution have previously announced a joint venture battery plant in Ohio.
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