Source: AFP
Japanese auto giant Honda on Thursday announced the largest auto investment in Canadian history, worth $15 billion (US$11 billion), for a massive new EV and vehicle battery assembly plant.
Honda CEO Toshihiro Mibe told a joint news conference with Prime Minister Justin Trudeau and other officials that electric vehicles (EVs) will begin rolling off the new assembly line in 2028.
Once fully operational, the plant will have a production capacity of 240,000 vehicles per year and a battery output of 36 GWh per year.
“The world is changing rapidly and we must work towards achieving carbon neutrality to preserve the global environment,” Mibe said.
Honda estimates 1,000 new jobs will be created at the facility, which is to be built next to the existing Civic and CR-V assembly plants north of Toronto that already employ 4,200 workers.
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Trudeau supported Ottawa’s efforts to create “an entire ecosystem” around electric battery production, positioning Canada as an attractive destination for electric vehicle investment, with generous tax incentives, access to renewable energy and its rare mineral deposits.
“Because of the choices our government has made over the last few years, Canada now ranks first globally in Bloomberg’s ranking of lithium-ion battery supply chains,” Trudeau said.
Driving the ‘EV revolution’
Ontario Premier Doug Ford noted that his province is “the only place in the world that six of the largest automakers call home” and with Honda’s investment it is now “leading the world in the electric vehicle revolution.”
In last week’s federal budget, the Trudeau government introduced a new business tax credit, granting companies a 10 percent rebate on construction costs for new facilities used in key parts of the electric vehicle supply chain.
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The estimated value of the federal tax credit for Honda’s new facility is C$2.5 billion, while Ford said the province is contributing another $2.5 billion in incentives.
Over the past four years, car and battery manufacturers have announced over Can$31 billion in electric vehicle manufacturing investments across Canada.
Canada’s strategy follows that of the neighboring United States, whose deflationary law has provided a number of incentives for green industry.
Since 2021, Honda has been spending heavily as it aggressively pursues its goal of going 100% electric in its automotive industry by 2040.
Its new facility in Alliston, Ontario will be the first to take advantage of Canada’s EV Supply Chain Investment Tax Credit and will join the recently announced Volkswagen and Stellantis battery plants in Canada.
Honda will also build an active material and cathode precursor processing plant as well as a separation plant through joint ventures with chemical companies POSCO Future M and Asahi Kasei to complete the local EV supply chain.
Source: AFP