- Honda to strengthen electric vehicle (EV) supply system and
capability with an eye toward a future increase in EV demand in
North America
- Honda to support global initiative to make BEVs and FCEVs
represent 100% of vehicle sales by 2040 by investing approximately
CAD$15 billion (USD$11 billion), including investment by joint
venture partners, to build a comprehensive electric vehicle value
chain in Canada
- Plan follows Honda EV Hub project in Ohio in the United
States and will represent a significant aspect of the
company's overall value chain in North
America
- Initiative represents recognition of the long-term
attractiveness of the Canadian EV manufacturing ecosystem
ALLISTON, ON, April 25,
2024 /PRNewswire/ - Honda Motor Co., Ltd. today
announced that it plans to build a comprehensive EV value chain in
Canada with an approximate
investment of CAD$15 billion
(USD$11 billion), including
investment by joint venture partners, to strengthen its EV supply
system and capability to prepare for a future increase in EV demand
in North America. Honda has begun
evaluating the requirements to build an innovative and
environmentally responsible Honda EV plant and a stand-alone Honda
EV battery plant in Alliston,
Ontario. The proposed Honda EV value chain will also
include a cathode active material and precursor (CAM/pCAM)
processing plant through a joint venture partnership with POSCO
Future M Co., Ltd. and a separator plant through a joint
venture partnership with Asahi Kasei Corporation, with
announcements to follow in their respective Ontario communities.
Honda expects that electric vehicle production will begin in
2028. Once fully operational, the EV plant will have a
production capacity of 240,000 EVs per year and the EV battery
plant will have a capacity of 36 GWh per year. In
addition to securing the current employment level of 4,200
associates at its two existing manufacturing facilities in
Ontario, Honda estimates it will
add a minimum of 1,000 new associates for the EV and EV
battery manufacturing facilities. The investment in the new
facilities will also create significant spinoff jobs across all
sites, including in the construction sector.
Honda has begun the process of evaluating the scope of its
investment and completing negotiations with its joint venture
partners. This work is expected to be finalized during the
next six months and more details will be shared at that time.
To support this project, Honda is collaborating with the
governments of Canada and
Ontario to drive innovation in
low-emissions manufacturing by accessing performance-based
initiatives available through the federal government's new
Investment Tax Credits and provincial direct and indirect
incentives.
North American EV
strategy
Striving to realize carbon neutrality for all its products and
corporate activities by 2050, Honda has set a goal to make BEVs and
FCEVs represent 100% of vehicle sales by 2040. To achieve this
goal, Honda will continue offering attractive products in this
electrified era globally, including its largest market of
North America.
As the first step in achieving this electrification goal in
North America, Honda positioned
its existing auto production plants in the state of Ohio in the U.S. as its EV Hub for production,
including the retooling of existing plants, an investment of
USD$700 million, and the construction
of a joint venture EV battery plant with LG Energy Solution, with
an expected investment of USD$4.4
billion.
The Ohio EV hub will serve as the foundation for future EV and
EV battery production, sharing knowledge and expertise with other
Honda plants in North America,
including the new EV assembly and battery plants in Ontario, Canada. Honda expects EV production
to begin at the Marysville Auto Plant in late 2025.
As a second step in this initiative, Honda will strive to
establish a comprehensive EV value chain that includes all aspects
of EV production in Canada, from
the procurement of raw materials mainly for batteries, to the
production of finished EVs. Honda will leverage EV production
knowledge learned at the Ohio EV Hub, combined with the abundant
resources and clean energy available in Canada, to establish a stable supply system
for batteries, the key component of EVs, and increase cost
competitiveness of its EVs as a whole.
Furthermore, with an eye toward secondary use and the recycling
of batteries, Honda will realize low-carbon value creation
throughout the entire battery life cycle, through which Honda will
establish a highly profitable business foundation and contribute to
the realization of a carbon-neutral society.
For more information, photos and future updates, please visit
www.hondanews.ca.
Comments by Toshihiro Mibe, Global CEO of Honda:
"Honda is making progress in our global initiatives toward the
realization of our 2050 carbon neutrality goal. In North
America, following the initiative to establish our EV production
system capability in the U.S., we will now begin formal discussions
toward the establishment of a comprehensive EV value chain here in
Canada, with the support of the
governments of Canada and
Ontario. We will strengthen our EV
supply system and capability with an eye toward a future increase
in EV demand in North
America."
Comments by Jean Marc Leclerc,
President and CEO of Honda Canada Inc.:
"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."
About Honda Motor Co.,
Ltd.
Honda Motor Co., Ltd. is responsible for the development,
production and sales of automobiles, motorcycles, power products
and aviation products worldwide. Honda now delivers over 28 million
products annually through its three product lines. Honda and its
partners build products in more than 60 manufacturing plants in 27
countries, employing about 197,000 associates globally. On a global
basis by 2050, Honda is striving to achieve carbon neutrality for
all products and corporate activities, as well as zero traffic
collision fatalities involving Honda automobiles and
motorcycles.
About Honda Canada Inc.
Honda Canada Inc. was founded in 1969 and is the parent company
for both Honda and Acura vehicle brands in Canada. Since 1986, the company has produced
Honda engines and more than 10 million cars and light trucks at its
Alliston, Ontario manufacturing
facilities, where Honda Civic and Honda CR-V are currently built.
Honda has invested over $6.5 billion
in Canadian operations, and each year sources over $3 billion in goods and services from Canadian
suppliers. Since its inception, Honda Canada has sold over five
million Honda and Acura passenger cars and light trucks in
Canada through a dealer network of
more than 280 dealerships across the country. For more information,
please visit www.hondacanada.ca.
About Honda of Canada
Mfg.
Honda of Canada Mfg. (HCM) began production in Alliston, Ontario in November 1986 and is Honda's only manufacturing
facility in Canada. HCM's plants
sit on 890 acres, encompass approximately 4 million square feet,
and employ 4,200 associates. The plants have the capacity to
produce more than 400,000 vehicles each year combined. HCM
manufactures two of Honda's best-selling models, the Honda Civic
and the CR-V, and produced its 10 millionth vehicle in 2023. For
more information, please visit www.hondacanadamfg.ca.
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SOURCE Honda Canada Inc.