Honda recently revealed plans to allocate $11 billion, in partnership with joint venture allies, towards enhancing its electric vehicle initiatives in Canada, with a focus on meeting the increasing demand for electric automobiles in North America. The company has initiated assessments for the establishment of an EV plant and an EV battery plant in Ontario, to complement its existing two manufacturing facilities in the region where it currently employs 4,200 workers. Additionally, Honda anticipates hiring more than 1,000 new employees for the new facilities, once operational.
The EV plant, once fully operational, is projected to have the capacity to produce up to 240,000 electric vehicles annually, while the battery plant is expected to have a production capacity of 36 GWh per year. Furthermore, Honda has outlined plans for a cathode active material and precursor processing plant in collaboration with POSCO Future M Co., as well as a separator plant in partnership with Asahi Kasei Corp. These strategic partnerships are set to bolster Honda's EV production capabilities in the coming years. Honda targets commencing electric vehicle production by 2028, aligning with the global trend of automakers transitioning towards electric vehicles to address environmental concerns such as emissions and climate change.
In an effort to keep pace with the rapidly evolving landscape of electric vehicles, Japanese automakers like Honda and Nissan are joining forces to advance their electric vehicle technology and auto intelligence offerings. While traditional Japanese automakers have traditionally excelled in combustion engine vehicles, they are now facing stiff competition from companies like Tesla and BYD, which have been frontrunners in the EV market. On a broader scale, Toyota also announced significant investments in the electric vehicle sector, with plans to inject $1.4 billion into its Indiana plant for the production of a battery electric SUV, creating hundreds of new jobs. The automaker is further investing $1.3 billion in its Kentucky facility to introduce another battery electric SUV model as part of its commitment to sustainable mobility.