ALLISTON, ON, April 25,
2024 /CNW/ - From mining critical minerals to
building cars and batteries, Canadian businesses and workers are
attracting historic investments to help secure and create jobs,
grow our economy, and keep our air clean. In the last four years,
automotive and battery makers have announced more than
$31 billion in investments in electric vehicle manufacturing
across Canada. They want a
reliable partner with world-class talent, and this is exactly what
we have to offer.
And the world is taking notice.
The Prime Minister, Justin
Trudeau, and the Premier of Ontario, Doug
Ford, today welcomed Honda Canada's milestone investment of
approximately $15 billion to create Canada's first comprehensive electric vehicle
supply chain, located in Ontario.
This large-scale project will see four new manufacturing plants
in Ontario. Honda will build an
innovative and world-class electric vehicle assembly plant – the
first of its kind for Honda Motor Co., Ltd. – as well as a new
stand-alone battery manufacturing plant at Honda's facilities in
Alliston, Ontario. To complete the
supply chain, Honda will also build 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.
Once fully operational in 2028, the new assembly plant will produce
up to 240,000 vehicles per year.
Honda's investments in an electric vehicle assembly plant and a
battery manufacturing plant in Alliston will create over one thousand
well-paying manufacturing jobs in Ontario, with the CAM/pCAM processing plant
and separator plant helping to create thousands of additional
direct and indirect jobs in Ontario and across Canada, including during the construction
phase and across Ontario's leading
auto parts supplier and research and development ecosystems.
This investment is a strong vote of confidence in Canada and Ontario's highly skilled workers, strong
economies, and competitive business environments.
Canada's auto sector has been
an engine of economic growth, driving innovation and creating good
middle-class jobs. As the demand for electric vehicles continues to
grow, we will attract even more investment and position our auto,
battery manufacturing, and battery material production industries
as global leaders across the entire electric vehicle supply chain,
to create economic growth and opportunities now and for generations
to come.
Quotes
"Today's announcement is a game changer for manufacturing in
Canada. Honda's investment is a
vote of confidence in Canada, in
Canadian auto workers, and in our manufacturing sector. Together,
we're creating good-paying jobs, growing our economy, and keeping
our air clean."
— The Rt. Hon. Justin Trudeau,
Prime Minister of Canada
"Today's historic $15 billion investment by Honda delivers
on our government's promise to bring back manufacturing as part of
our plan to rebuild Ontario's
economy, with thousands of good-paying union jobs and economic
benefits for workers and families across the province. From our
abundant critical minerals in the Ring of Fire to our highly
skilled workforce, Ontario has
what it takes to secure the jobs of the future as the world leader
in electric vehicle manufacturing, with better jobs and bigger
paycheques for our world-class workers."
— The Hon. Doug Ford, Premier of
Ontario
"Canada is home to the talented
workers, raw materials, clean electricity, and specialized
production capabilities needed to build electric vehicles. Today's
announcement ‒ Honda's largest investment in North America ‒ is about seizing that
opportunity for Canadian workers. We are securing Canada's electric vehicle advantage by
building out the entire electric vehicle supply chain ecosystem,
from raw materials to battery manufacturing to auto assembly lines
‒ ensuring workers benefit today and for decades to come."
— The Hon. Chrystia Freeland,
Deputy Prime Minister and Minister of Finance
"As the world shifts toward more sustainable vehicles,
Canada is seizing the opportunity
and positioning itself as a global leader when it comes to building
the cars of the future. This historic investment by Honda is a
testament to Canada's attractive
and competitive business environment. With a highly skilled
workforce, clean energy, an abundance of critical minerals, access
to markets, and a flourishing electric vehicle ecosystem,
Canada has everything that
companies like Honda need to grow."
— The Hon. François-Philippe
Champagne, Minister of Innovation, Science and Industry
"Several years in the making, Honda's historic investment
represents a vote of confidence in Ontario's status as a leading jurisdiction in
the global production and development of electric vehicles,
batteries, and battery materials. As our province continues to
build a fully integrated end-to-end electric vehicle supply chain,
Honda's investment will play an integral role in advancing the
innovative technologies that will define the future of automotive
design, while securing thousands of good-paying jobs for workers in
Alliston and across the province.
Thank you, Honda, for choosing Ontario."
— The Hon. Vic Fedeli,
Ontario's Minister of Economic
Development, Job Creation and Trade
"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."
— Jean Marc Leclerc, President and Chief Executive Officer,
Honda Canada
Quick Facts
- In Budget 2024, the federal government announced its
intention to introduce the new 10 per cent electric vehicle (EV)
Supply Chain investment tax credit, to attract investment across at
least three supply chain segments:
-
- EV assembly.
- EV battery productions.
- Cathode active material production.
- The new EV Supply Chain investment tax credit is the
government's sixth major economic investment tax credit and
complements the 30 per cent Clean Technology Manufacturing
investment tax credit. The government is focused on delivering all
major economic investment tax credits on a priority basis.
- It is estimated that Honda's new investments in eligible EV
supply chain segments could benefit from federal support in the
range of $2.5 billion through
the proposed EV Supply Chain investment tax credit and the proposed
Clean Technology Manufacturing investment tax credit.
- The Government of Ontario will
provide support of up to $2.5 billion for these segments through
various direct and indirect incentives.
- Planning for Honda's new facilities in Alliston is expected to be finalized in the
next six months, at which point the company will release additional
details. Honda, the Government of Canada, and the Government of Ontario are working together to support this
project.
- Honda's proposed full EV supply chain will include a new
CAM/pCAM processing facility through a joint venture partnership
with Korean battery materials company POSCO Future M Co., Ltd. as
well as a new separator facility through a joint venture
partnership with Japanese chemical company Asahi Kasei Corporation.
Both of these facilities will be located in Ontario, with announcements to follow in their
respective communities.
- This project is part of Honda's efforts to achieve carbon
neutrality. The company is targeting sales of 100 per cent
zero-emission EVs in North America by 2040.
- Honda is a global automotive industry leader headquartered in
Tokyo, Japan. The company was the
first Japanese automaker to produce cars in Canada. It established Honda Canada in 1969
and started production in Alliston,
Ontario, in 1986. These facilities – Honda's only
manufacturing facilities in Canada
– currently include two auto plants and one engine plant. They have
the capacity to produce more than 400,000 vehicles and 190,000
engines annually. The company employs over 4,200 people in
Alliston and has a network of more
than 280 dealerships across the country.
- The governments of Canada and
Ontario previously made matching
investments of $131.6 million to
help Honda Canada retool its manufacturing operations in
Alliston for the next generation
of hybrid EVs.
- This is the latest in a series of historic investments
Canada has attracted across
our EV supply chain, from mining to
manufacturing. With Honda's new project, these investments now
total more than $46 billion since 2020. They also include,
among others:
-
- $7 billion for a new EV battery manufacturing facility
built by Northvolt Batteries North America in Saint-Basile-le-Grand and McMasterville, Quebec.
- $7 billion for Volkswagen's first overseas EV battery
manufacturing plant, in St. Thomas,
Ontario.
- Over $5 billion from Stellantis and LG Energy Solution to
create a joint venture for the manufacturing of EV batteries in
Windsor, Ontario.
- $1.8 billion for Ford's
repurposed battery-EV production plant at its Oakville Assembly
Complex, in Ontario.
- $1.5 billion for Umicore to
build a new world-leading net-zero facility in Loyalist Township,
Ontario, which will produce
essential components of EV batteries.
- $1.2 billion for a new
battery materials production plant in Bécancour, Quebec, built by a consortium formed by the
Ford Motor Company and South
Korea's EcoProBM and SK On.
- $600 million for a CAM facility to be built by a
joint venture between General Motors
and POSCO Future M Co.,
Ltd. in Bécancour, Quebec.
- Budget 2023 introduced a refundable Clean Technology
Manufacturing investment tax credit to cover 30 per cent of costs
in new machinery and equipment used to manufacture or process clean
technologies and extract, process, or recycle key critical
minerals.
- Canada's automotive
sector builds more than 1.5 million vehicles each year –
one every 21 seconds. It supports nearly 550,000 direct and
indirect jobs, contributed $18 billion in 2023 to Canada's gross domestic product, and is one of
the country's largest export industries. It is anchored by the
presence of five automotive manufacturers: Stellantis, Ford,
General Motors, Toyota, and Honda.
- Transportation accounts for about a quarter of our emissions in
Canada. That's why the Government
of Canada has an ambitious target
of 100 per cent zero-emission vehicle sales by 2035, coupled with a
suite of support measures from charging infrastructure to purchase
incentives.
- It is projected that the global sales of EVs will be over three
times higher in 2030 than it was in 2023, and Canada is well positioned to be a major player
in EV production.
Associated Link
• Budget 2024: Fairness for Every Generation
This document is also available
at https://pm.gc.ca
SOURCE Prime Minister's Office