Honda, a well-known Japanese car manufacturer, is thinking of building a new electric car factory in Canada, which could cost around $13.83 billion. This decision carries significant financial weight for Honda. They are considering producing car batteries at this new facility. Japan’s Nikkei news group shared the details about this big idea on January 7.

Even though Honda has not officially announced it, the Canadian government’s industry office is excited about a potential investment. They see it as proof of Canada’s skilled workers and growing industries. Honda has not sold many electric cars compared to other types. Less than 0.5% of their global sales in the first nine months of 2023 were electric cars. Honda considers placing a new factory near an existing one in Ontario, Canada, and aims to decide before year-end, potentially starting operations by 2028. They plan to sell electric cars in North America by 2026 using their new Honda e:Architecture. In 2022, they partnered with LG Energy Solution for an Ohio battery plant. However, in October 2023, Honda and General Motors scrapped their $5 billion deal to jointly produce affordable electric cars aimed at challenging Tesla.