Honda Motor Co., a prominent Japanese automotive manufacturer, is deliberating the establishment of an electric vehicle (EV) factory in Canada. This proposed endeavor is estimated to involve an investment of approximately $13.83 billion, positioning it among Honda’s most significant financial commitments. Notably, there is a prospect that this prospective facility could incorporate the internal manufacturing of batteries. Specifics regarding this ambitious initiative were disclosed by Japan’s Nikkei news group on January 7.

Although Honda has not confirmed this news, Canada’s industry minister’s office praised the potential investment, mentioning that it reflects the high quality of Canada’s workforce and the strength of its industry. Honda has been a bit slow in selling electric vehicles compared to other cars. Only a tiny portion, less than 0.5%, of their worldwide car sales in the first nine months of 2023 were electric vehicles. This potential factory might be situated near an existing car factory in Ontario, Canada. Honda is exploring various locations for this plant and aims to make a decision by the end of this year. If things go as planned, the new factory could start operating as early as 2028. Honda has already made plans to start producing and selling EVs in North America by 2026, based on their new Honda e:Architecture. In 2022, they announced a joint-venture with LG Energy Solution to build a battery plant in Ohio. However, in October 2023, Honda and General Motors canceled their plan to collaborate on making affordable electric vehicles, a year after agreeing to a $5 billion deal to compete with Tesla in sales.