Honda Motor Co. is making strategic moves to boost its electric vehicle (EV) initiatives in Canada, aiming to align with the rising demand for EVs in North America. The company has announced an $11 billion investment plan, in collaboration with joint venture partners, to set up an EV plant and a battery plant in Ontario as part of its preparations for the future automotive landscape. With two existing manufacturing plants in Ontario supporting 4,200 employees, Honda intends to expand its workforce by at least 1,000 employees to operate the new facilities effectively.
The anticipated EV plant is projected to have an annual production capacity of 240,000 EVs, while the planned battery plant is expected to produce 36 GWh per year. Additionally, Honda is looking to establish a cathode active material and precursor processing plant through a joint venture with POSCO Future M Co., along with a separator plant via a partnership with Asahi Kasei Corp. The company has disclosed that production of EVs is slated to begin in 2028, showcasing a focus on future-oriented strategies to meet the evolving market demands.
Moreover, Honda's partnership with POSCO Future M Co. and Asahi Kasei Corp. for the cathode active material, precursor processing plant, and separator plant respectively, demonstrates a collaborative approach towards enhancing its EV capabilities. The automotive industry's shift towards electric vehicles is gaining momentum globally, prompting automakers to prioritize battery and motor technologies over traditional combustion engines, in response to environmental concerns like emissions and climate change. Despite the rapid evolution in EV technology, Japanese automakers, including Honda, have faced challenges to keep pace with competitors like Tesla and BYD, who have excelled in the EV market, largely due to their historical prowess in conventional combustion engine vehicles.