Honda is investing US$11 billion in an electric vehicle (EV) supply chain in Canada, showing more commitment to fully electrified cars than any other Japanese automaker.
“The biggest announcement in the history of Honda! Their investment in Canada will be a game-changer,” commented François-Philippe Champagne, Canada’s Minister of Innovations, Science, and Industry.
The Japanese automaker plans to create a fully integrated vertical supply chain, from raw materials to batteries and EV production. Honda’s Global CEO Toshihiro Mibe noted that the company’s investment in Canada would build a strong and stable foundation for highly profitable EV production.
Honda aims to manufacture 240,000 electric vehicles in its production plant in Alliston, Ontario, by 2028. The focus on EV production in Alliston is expected to create 1,000 jobs in Ontario, and Honda’s investments in other areas are expected to create more jobs across Canada.
“Honda of Canada Manufacturing is one of the premier automotive manufacturing facilities in the world and for nearly forty years, our work has been guided by determination, innovation, and a relentless drive to evolve. Today’s announcement is a historic investment by a manufacturer in the Canadian auto industry. It proudly honours the highly skilled associates who have earned a global reputation for manufacturing excellence and represents Honda’s recognition of the long-term attractiveness of the Canadian electric vehicle manufacturing ecosystem,” said Honda Canada’s President and CEO Jean Marc Leclerc.
By 2030, Honda wants its entire car lineup to be electrified. To people following the trajectory of EV adoption, Honda’s EV production timeline might be considered minuscule. However, as previously mentioned, Japanese automakers have been slow to pick up electric vehicle production.
In 2024, automakers actually talked about slowing EV demand. As a result, OEMs are turning to hybrids. Honda’s latest move in Canada starkly contrasts with other automakers in the US market that are looking more toward hybrid production.
Meanwhile, pure electric car makers like Tesla and Rivian continue the fight for 100% EV adoption in the global auto market.
“As we all have seen, the EV adoption rate globally is under pressure, and a lot of other order manufacturers are pulling back on EVs and pursuing plug-in hybrids instead. We believe this is not the right strategy, and electric vehicles will ultimately dominate the market,” said Elon Musk in the TSLA Q1 2024 earnings call.
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