Honda begins considering building a comprehensive EV value chain in Canada, including building an EV-only factory and battery factory – Car Watch

Honda Motor Co., Ltd. announced on April 25th that it is aiming to build a comprehensive value chain for EVs (electric vehicles) in Canada, including constructing a finished car factory exclusively for EVs (electric vehicles) and a battery factory for EVs. They announced that they had started considering it.

The purpose of this project is to strengthen the EV supply system in preparation for the future increase in demand for EVs in North America.Considerations include the construction of an EV-dedicated finished vehicle factory and EV battery factory, as well as the construction of a joint venture with partner companies. This includes establishing a production system in Canada for major battery components such as separators and cathode materials.

The EV factory currently under construction is planned to minimize environmental impact and introduce innovative production technology, and is expected to have a maximum annual production capacity of 240,000 units. The company aims to start operations in 2028. Additionally, the maximum annual production capacity of the battery factory is assumed to be 36GWh.

Honda of Canada Manufacturing (Ontario, Canada), which produces automobiles in Canada, currently employs 4,200 people, and will employ approximately 1,000 new people with the operation of both plants, which will be built adjacent to the existing plant. I’m planning to go.

In addition, the company is considering launching joint venture production plants in Canada for the main components of batteries, with POSCO Future M Co., Ltd. for cathode materials and Asahi Kasei for separators.

The total investment involved in building a comprehensive EV value chain, which we are considering this time, is currently estimated to be approximately 15 billion Canadian dollars, including investment from joint venture partners. In addition to subsidies from the Canadian federal government’s Investment Tax Credit system, the company plans to receive subsidies from the province of Ontario, and will proceed with discussions with the Canadian federal government and the province of Ontario.

The details of the investment will be carefully examined over the next six months, and details will be announced once the final decision is made this fall.

Toshihiro Mibe, Director, Representative Executive Officer and President of Honda Motor Co., Ltd., said, “Honda is working globally to achieve carbon neutrality in 2050.In North America, following the establishment of an EV production system in the United States, this In Canada, with the support of the Canadian federal government and the Ontario provincial government, we have begun considering building a comprehensive EV value chain to strengthen our EV supply system in preparation for the future increase in EV demand in North America. I will continue to do so,” he commented.

Jean Marc Leclerc, President and CEO of Honda Canada Inc., said, “For nearly 40 years, Honda of Canada Manufacturing, as one of the world’s leading automobile production plants, has continued to take on the constant challenge of evolution. This investment is a historic initiative in the Canadian automotive industry. It is a recognition of Honda of Canada Manufacturing’s outstanding production technology and highly skilled employees. “This shows that the EV production ecosystem is very attractive to Honda in the long term.”

The second one is Canada, following the first one in Ohio, USA.

As the first step toward achieving carbon neutrality, Honda has positioned its Ohio factory in the U.S. as a hub for EV production, renovated its production facilities, and established a battery factory through a joint venture with LG Energy Solutions. The company is working on building the foundation for an EV production system in North America, including construction.

The second initiative in Canada will be based on the EV production know-how cultivated at our base in Ohio, and will utilize Canada’s abundant resources and clean energy to handle everything from procurement of raw materials, mainly batteries, to production of finished vehicles. We aim to build a comprehensive value chain.

This will establish a stable supply system for batteries, which are the core components of EVs, increase the cost competitiveness of EVs as a whole, and create value throughout the life cycle of batteries, with a view to secondary use and recycling. By achieving this with low carbon emissions, the company aims to establish a highly profitable business foundation and contribute to the realization of a carbon-neutral society.