Canada's Finance Minister Chrystia Freeland disclosed that she recently held discussions with representatives from Honda Motor regarding the potential establishment of an electric vehicle (EV) plant in Canada, estimated to cost almost 2 trillion yen (approximately US$13.7 billion). Freeland emphasized Honda's significance as an investor in Canada and noted ongoing dialogue between the company and government officials from various departments.
The reported discussions come amidst Honda's exploration of multiple potential sites for the EV plant, with Alliston, Ontario, being one of the locations under consideration. Honda aims to finalize its decision by the end of 2024 and potentially commence operations at the new facility as early as 2028.
Canada has been actively courting investments across the EV supply chain to bolster its manufacturing sector, particularly in Ontario. Prime Minister Justin Trudeau has indicated a desire for more targeted investments following substantial subsidies provided to other automakers for their planned battery gigafactories.
Honda's announcement to launch a new electric vehicle series from 2026 reflects its efforts to catch up with global competitors in the electric vehicle market. Despite its relatively slow adoption of electric vehicles, Honda has taken steps to address this, including partnering with LG Energy Solution for a joint venture battery plant in Ohio, with an investment of US$4.4 billion.
The potential establishment of an EV plant by Honda signifies Canada's commitment to attracting investments in clean technology and aligning with global efforts to reduce carbon emissions. The ongoing dialogue between Honda and Canadian officials underscores the importance of collaboration in advancing the electric vehicle industry.
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