Honda To Invest Multi-Billion Dollar In EV Assembly In Ontario, Marks Historic Deal: Reports
The formal declaration is slated for Thursday at Honda's Alliston facility in Ontario.
Ontario Premier Doug Ford heralds what he terms the “largest deal in Canadian history” as Honda prepares to unveil a multi-billion dollar initiative this week to manufacture electric vehicles (EVs) and components within Ontario, reveal sources within the government to CBC News.
According to senior government insiders, who divulged this information to CBC News under strict anonymity due to lacking public authorization, the agreement is anticipated to encompass the establishment of fresh facilities dedicated to battery production, processing of cathode active materials crucial for EV batteries, and the assembly of electric-powered vehicles.
Initial coverage of this development emerged from Bloomberg.
The sources disclosed that the formal declaration is slated for Thursday at Honda’s Alliston facility in Ontario. Further details regarding governmental subsidies for the venture may be disclosed during this event.
The recently proposed budget, pending approval by Parliament, introduced an EV supply chain investment tax credit, which likely sweetened the deal for Honda. This proposal entails a 10% tax credit on construction costs for facilities involved in three pivotal segments of the EV supply chain: assembly, battery manufacturing, and cathode active material processing.
Ford hinted at the impending deal during his address at the annual First Nations Major Projects Coalition conference on Monday.
“This week, we secured a new agreement. It will mark the largest agreement in the annals of Canadian history,” he declared to the audience. “So, stay tuned, as I’ll be unveiling it this week.”
Ford intimated that the agreement will encompass multiple facilities “across the region.”
“There will be benefits for all,” he affirmed.
The anticipated Honda collaboration constitutes the latest addition to a series of initiatives bolstering the EV sector in Canada, predominantly in Ontario and Quebec.
Last year, federal and provincial authorities unveiled several agreements with EV battery manufacturers such as Northvolt, Volkswagen, and Stellantis-LGES.
Governments justify subsidizing EV production as a strategy to match the measures outlined in the Inflation Reduction Act, a $369 billion U.S. initiative offering subsidies and incentives to American companies engaged in electric vehicle production.
Responding to the impending deal, Flavio Volpe, president of the Automotive Parts Manufacturers’ Association, emphasized heightened interest among suppliers.
“Honda doesn’t engage in speculative long-term commitments,” he emphasized to CBC News. “With almost four decades of uninterrupted car manufacturing in Canada, a contract with Honda holds substantial credibility.”