May 26th, 2024

CP NewsAlert: Honda to build electric vehicles and battery plant in Ontario: sources

By The Canadian Press on April 22, 2024.

Honda Canada is set to build an electric vehicle battery plant near its auto manufacturing facility in Alliston, Ont., where it also plans to produce fully electric vehicles. A general view of production along the Honda CRV production line is shown during a tour of the Honda plant in Alliston on Wednesday, Apr. 5, 2023. THE CANADIAN PRESS/Cole Burston

TORONTO – Honda Canada is set to build an electric vehicle battery plant near its auto manufacturing facility in Alliston, Ont., where it also plans to produce fully electric vehicles.

The Canadian Press has learned that the federal and Ontario governments will make the announcement this week.

Senior sources with information on the project confirmed the deal but were not yet able to give any dollar figures.

Ontario Premier Doug Ford this morning told a First Nations conference that there will be an announcement this week about a new deal that he said will be double the size of a Volkswagen deal announced last year.

That EV battery plant set to be built in St. Thomas, Ont., comes with a $7-billion capital price tag.

The Honda facility will be the third electric vehicle battery plant in Ontario, following in the footsteps of Volkswagen and a Stellantis LG plant in Windsor, Ont., and while those two deals involved billions of dollars in production subsidies as a way of competing with the United States’ Inflation Reduction Act subsidies, Honda’s is expected to involve capital commitments and tax credits.

More coming.

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