Honda to invest 1.7 trillion yen in EV production in Canada, local government also supports – Source – Bloomberg

Honda plans to invest 15 billion Canadian dollars (approximately 1.7 trillion yen) to produce electric vehicles (EVs) in northern Toronto, Ontario, Canada. This was revealed by a person familiar with the matter. Canada has also promised large-scale financial support.

The investment is expected to be announced in Alliston, Ontario on the morning of the 25th by Honda officials, Prime Minister Trudeau, Ontario Premier Ford, and others. Bloomberg News first reported on the 21st that Honda and the Canadian government were close to a deal.

For Honda, this is part of its efforts to anticipate long-term demand for EVs in North America. The company produces hybrid vehicles in the United States, and has announced plans to begin manufacturing its first American-made EV in Marysville, Ohio, next year.

In an announcement on the 25th, Honda announced plans to build a new battery assembly plant in Alliston, which is about an hour’s drive north of Toronto. The existing local plant is expected to be expanded to accommodate EVs, said a person with direct knowledge of the project, who asked not to be identified.

Honda also plans to invest in a cathode materials facility and a battery parts plant in Ontario, which will involve other companies and exact details will be revealed later, the people said. Ta.

The Canadian government’s support for Honda’s investment will come in the form of tax credits for clean manufacturing and electric vehicle production. But the exact financial burden will depend on how much Honda actually spends in Canada. Meanwhile, the province of Ontario is expected to subsidize some of the capital costs of the project, as well as potentially funding needed infrastructure such as new roads and sewers, officials said.

Original title: Honda’s $11 Billion Canada EV Expansion Includes Government Aid (excerpt)