Honda may build an EV factory in Canada featuring in-house battery cells

(Credit: Honda-LGES JV Company)

Japanese automaker Honda is considering locations to build an electric vehicle (EV) factory in Canada featuring the use of in-house battery cells.

According to a report on Sunday from Nikkei Asia, Honda could be set to spend as much as $14 billion on an upcoming EV plant in Canada, which would represent one of the automaker’s largest investments yet if pursued. The automaker is looking at multiple potential locations in the North American country, including a site in Ontario that’s near a currently existing auto plant.

Honda would be aiming to have the facility operational by 2028, and the company is planning to decide on a specific location by the end of this year. The site would also be the Japanese automaker’s second North American plant, following a U.S. factory that’s currently under construction.

In June, Honda and LG Energy Solution (LGES) broke ground on a new EV plant in Jeffersonville, Ohio. The facility is expected to employ a total of 2,527 workers, and Honda expects the facility to be completed by the end of 2024. It’s also expected to help the automaker gain access to EV tax credits in the U.S. under Inflation Reduction Act (IRA) rules mandating that vehicles are built domestically.

Canada has enacted a plan to ban the sale of new internal combustion engine (ICE) vehicles by 2035, dubbed the Electric Vehicle Availability Standard, and following in the footsteps of the European Union (EU) and U.S. states, California, Maryland and New Jersey.

Honda and General Motors (GM) had also planned a partnership to develop affordable EVs and compete with market leader Tesla, though the automakers said in a joint statement in October that they would be canceling those plans.

“After extensive studies and analysis, we have come to a mutual decision to discontinue the program,” the companies said in the statement. “Each company remains committed to affordability in the EV market.”

Interestingly, Honda is also targeting another market with electric motorcycles, and the automaker plans to launch 10 or more fully electric motorcycle units by 2025 — with as many as 3.5 million sales per year by 2030.


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Zachary Visconti: Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently resides in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver and many other publications. When he isn't covering Tesla or other EV companies for Teslarati, you can find him writing and performing music, drinking lots of coffee, or hanging out with his cat, Banks. Reach out to Zach at, or you can find him on X @zacharyvisconti.
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