“Honda Set to Unveil Plans for Ontario Electric Vehicle Battery Plant in $15B Investment”
Today, Prime Minister Justin Trudeau, Ontario Premier Doug Ford, and executives from Honda are poised to unveil plans for the Japanese automaker’s electric vehicle battery plant in Alliston, Ontario, as part of a significant $15-billion investment.
Insiders familiar with the project have revealed to The Canadian Press that Honda will also revamp its assembly plant in Alliston to manufacture fully electric vehicles. The comprehensive $15-billion initiative encompasses the retooled plant, the electric vehicle battery facility in close proximity, and two crucial battery parts facilities situated elsewhere in Ontario.
While there may be some financial contributions from at least one level of government, sources emphasize that the agreement does not entail production subsidies, unlike the incentives offered under the Inflation Reduction Act in the United States.
Instead, the federal government has proposed a 10 percent Electric Vehicle Supply Chain investment tax credit in its recent budget, which Honda can potentially claim in addition to the existing 30 percent Clean Technology Manufacturing Investment tax credit.
This forthcoming Honda facility will mark the third electric vehicle battery plant in Ontario, following Volkswagen’s establishment in St. Thomas and a Stellantis LG plant in Windsor. Furthermore, Honda’s agreement encompasses two pivotal parts suppliers for their batteries — cathodes and separators — with the specific locations of these facilities slated for announcement at a later date.
This development follows years of deliberations and consultations between Honda executives and the Ontario government, initiated after the previous significant government announcement at Honda’s Alliston facility. In March 2022, Trudeau, Ford, and Honda executives were present when the automaker announced hybrid production at the plant, supported by $131.6 million in assistance from both levels of government. These discussions catalyzed talks about a more expansive investment in electric vehicles, with negotiations commencing in the subsequent summer, as per sources.
