Honda, a well-known Japanese car company, is thinking about creating an electric vehicle (EV) factory in Canada. This plan could cost around $13.83 billion, making it one of Honda’s most significant financial moves. They might even make their own batteries at this new place. Japan’s Nikkei news group shared the details about this big idea on January 7.

Even though Honda has not confirmed this yet, Canada’s industry minister’s office is excited about the possible investment. They think it shows how good Canada’s workers are and how strong its industry is. Honda has not sold many electric cars compared to other types. In the first nine months of 2023, less than 0.5% of the cars they sold worldwide were electric. They are thinking of building this new factory near another car factory in Ontario, Canada. Honda is looking at different places for this factory and wants to decide by the end of this year. If everything goes well, the factory might start working in 2028. Honda is already planning to make and sell EVs in North America by 2026 using their new Honda e:Architecture. In 2022, they said they would work together with LG Energy Solution to build a battery plant in Ohio. But in October 2023, Honda and General Motors canceled their plan to make cheaper electric cars together, even after agreeing to a $5 billion deal a year earlier to compete with Tesla.