Japanese automaker Honda is considering investing a total of 2 trillion yen (about 18 trillion won) in Canada to build a new electric vehicle factory, local media reported.
According to a report by the Nihon Keizai Shimbun on the 23rd, Honda is considering a new factory site near the existing Honda Motor plant in Ontario, Canada. Honda plans to decide on its investment plan within this year with the goal of operating in 2028.
Honda plans to produce electric vehicles in the U.S. state of Ohio starting in 2026, making it the second EV plant in North America when a new plant goes into operation in Canada. That’s the largest Honda has ever invested in.
North America is an important region for Honda, accounting for 40% of global car sales. However, gasoline car sales are mostly now. When the plant is completed, Honda’s North American electric vehicle production capacity is expected to exceed 1 million units per year by 2028.
Honda has set a goal of making all new cars sold worldwide into electric or fuel cell vehicles (FCVs) by 2040, and has decided to invest a total of $40 billion (W52 trillion) by 2030 to strengthen its competitiveness in electric vehicles.
Honda is also considering producing its own batteries for electric vehicles in Canada.
Honda already started construction of a 40GWh battery factory with LG Energy Solution in Ohio at the end of February last year. The factory will be completed by the end of this year and will start mass production by the end of next year.
SALLY
ASIA JOURNAL
