Honda Toys With Idea To Build RM 64 Billion EV Plant In Canada

This proposed new Canadian Honda EV plant could possibly include in-house battery production. 

While Honda has long been languishing in the full EV space, things might soon be about to change. Such is because it has recently been reported that the Japanese automaker may soon be pouring a whopping near-2-trillion-yen (RM 64 billion) investment into building an EV plant in Canada, which supposedly will include in-house battery production capabilities too. 

A story that was first broken by Japan’s Nikkei, this project will apparently be one of Honda’s largest investments to date. The automaker is reportedly to currently be looking at multiple potential sites for the plant, including next to an existing automobile factory in Ontario. It is further reported that Honda expects to come to a decision by the end of the year, while the first cars rolling out of this new site could potentially start as soon as 2028. 

Canada’s industry minister’s office said in a statement to Reuters for Honda’s willingness to invest in the country speaks to the quality of the country’s workforce and the strength of its industry. “It is a testament to Canada’s growing reputation as a green supplier of choice and global EV leader,” the spokesperson said. Though before anyone gets too excited regarding this prospect, it is nevertheless worth highlighting for the Japanese automaker however has declined to comment on the report, saying there was nothing it could disclose at this time.

Honda’s EVs currently account for less than 0.5% of its worldwide sales of about 2.8 million cars over the first nine months of 2023, and this figure isn’t likely to improve soon. Such is not only because the automaker only technically has the mediocre e:Ny1 as its global fully-electric offering right now, but it has also since cancelled back in October last year its grand plan to collaborate with General Motors on developing affordable electric vehicles. 

That said, Honda already has stated that it plans to launch a selection of new EVs in North America come 2026, based on its new e:Architecture. The automaker has since partnered with LG Energy Solution too to develop a battery plant in Ohio to the tune of $4.4 billion (RM 20.5 billion).

In all fairness too, it is not as if Honda has left far-behind in the electrification field. A quarter of all its sales in North America in 2023 have after all consisted of the Accord and CR-V Hybrid, with similarly healthy uptake reported over here in Malaysia too. And hence with this in mind then, it is therefore rather easy to see why Honda may perhaps not be panicking on getting on board that full EV train just yet. 

Joshua Chin

Automotive journalist. Professional work on and Personal writing found at Instagram: @driveeveryday

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