According to the announcement, the EV factory to be built adjacent to the existing factory is expected to have a maximum annual production capacity of 240,000 units, with the aim of starting operations in 2028. In addition to minimizing environmental impact, the new factory “plans to introduce innovative production technology.” Bloomberg reported on Honda’s investment plans this afternoon, based on sources familiar with the matter.
The company is also considering building a 36 gigawatt-hour EV battery factory.Regarding the main components of batteries, cathode materials are manufactured in South Korea. POSCO Future M and separator The company is considering starting a joint production plant with Asahi Kasei in Canada.
Honda and Asahi Kasei agree to collaborate in producing separators for car batteries in Canada (1)
Among the Japanese companies that have been conspicuously cautious about EVs, Honda, under the direction of Toshihiro Mibe, who took over as president in 2021, is the first to aim for all cars it sells to be EVs or fuel cell vehicles by 2040. I came up with a plan. The EV market, which has continued to grow rapidly, is steadily increasing, although there are signs of a slowdown recently, and Honda and other companies have an urgent need to establish production systems in major markets such as North America.
According to Honda’s announcement, the total investment amount related to building the EV value chain announced this time also includes investment from joint venture partners. Negotiations are underway with the plan to receive subsidies from the Canadian government and the province of Ontario. The details of the investment will be examined in the future, and details will be announced once the final decision is made this fall.
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.
The Canadian government’s support for Honda’s investment will come in the form of tax credits for clean manufacturing and electric vehicle production, a person familiar with the matter said on condition of anonymity. 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)
(Updated to reflect company announcements)
Tags: Honda considers investing trillion yen production Canada Local government supports Bloomberg
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