Honda Invests $11 Billion in Canadian EV Production
Honda Motor Co. is making a major push into the electric vehicle (EV) market with a $11 billion investment in Canada. The company plans to build an EV plant and a separate EV battery plant in Ontario, creating at least 1,000 new jobs.
The EV plant will have a production capacity of 240,000 vehicles per year, while the battery plant will have a capacity of 36 GWh per year. Honda also plans to build a cathode active material and precursor processing plant through a joint venture with POSCO Future M Co., and a separator plant through a joint venture with Asahi Kasei Corp.
EV production is expected to start in 2028. This move comes as the world's automakers are rapidly shifting towards electric vehicles, focusing on batteries and motors instead of gas engines. Japanese automakers have fallen behind rivals such as Tesla and BYD in developing EVs, but Honda's investment signals a commitment to catching up.
Toyota Invests in Indiana EV Production
Toyota is also investing in EV production, announcing a $1.4 billion investment in its Princeton, Indiana plant to produce a battery electric SUV. The move will create up to 340 jobs. This follows a recent announcement of a $1.3 billion investment to produce a separate battery electric SUV at its Kentucky facility.
These investments by Honda and Toyota demonstrate the growing importance of the EV market and the commitment of major automakers to transitioning away from gas-powered vehicles.