Honda Canada reportedly plans to build an electric vehicle (EV) battery plant near its manufacturing facility in Alliston, Ontario. The plan involves a deal with the federal and provincial governments.
According to the Canadian Press (via CTV News), sources with information about the project confirmed the deal but couldn’t share dollar figures. The governments are expected to announce the details later this week. Further, Ontario Premier Doug Ford teased an announcement coming this week, saying on Monday the new deal is twice the size of the 2023 Volkswagen deal.
Honda’s reported EV battery plant is set to be built in St. Thomas, Ontario and bears a $7 billion capital price tag. Honda also reportedly plans two more facilities to supply key battery parts (cathodes and separators), which will be located in Ontario. Announcements for those facilities will come at a later date.
The deal comes after the federal government announced a 10 percent tax credit on the cost of buildings related to EV production as part of the 2024 budget. That credit builds on the existing 30 percent tax credit on the cost of investments in new machinery and equipment.
The Canadian Press also noted that the deal with Honda follows years of meetings and discussions between the company and the Ontario government. Apparently, meetings between Ford and Honda Canada executives in November and December 2023 closed the deal, sources told the Canadian Press.
Honda’s facility will be the third EV battery plant in Ontario after Volkswagen and Stellantis. However, both of those deals involved billion-dollar subsidies, while the Honda deal is expected to involve capital commitments and tax credits.
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Source: The Canadian Press (CTV News)
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