The Prime Minister’s office has announced Honda Canada’s investment of approximately $15 billion to develop Canada's first comprehensive electric vehicle (EV) supply chain in Ontario.
The ambitious project will result in constructing four new manufacturing plants in Ontario, including an innovative electric vehicle assembly plant and a standalone battery manufacturing facility at Honda’s Alliston operations.
In addition to the assembly and battery plants, Honda will partner with POSCO Future M Co., Ltd. to create a cathode active material and precursor processing plant and with Asahi Kasei Corporation to establish a separator plant. These facilities are pivotal in completing the EV supply chain, ensuring seamless and efficient production. Once operational in 2028, the assembly plant alone is expected to produce up to 240,000 vehicles annually.
This investment is set to create over one thousand manufacturing jobs directly in Ontario, with thousands more indirect jobs anticipated throughout Canada. These include roles in construction and within Ontario’s auto parts supplier and research and development ecosystems.
Prime Minister Justin Trudeau described the investment as a "game changer" for manufacturing in Canada, emphasizing the job creation and economic growth it will spur. Ontario Premier Doug Ford highlighted the role of Ontario's abundant resources and skilled workforce in securing this investment, predicting robust economic benefits and good-paying union jobs.
“From our abundant critical minerals in the Ring of Fire to our highly skilled workforce, Ontario has what it takes to secure the jobs of the future as the world leader in electric vehicle manufacturing, with better jobs and bigger paycheques for our world-class workers,” Ford said in a statememt.
Industry Minister François-Philippe Champagne added, “As the world shifts toward more sustainable vehicles, Canada is seizing the opportunity and positioning itself as a global leader when it comes to building the cars of the future. This historic investment by Honda is a testament to Canada’s attractive and competitive business environment.”
Jean-Marc Leclerc, CEO of Honda Canada, noted that this investment is a historic milestone that recognizes the attractiveness of the Canadian EV manufacturing ecosystem.
The Ontario Chamber of Commerce (OCC) also supported the announcement, with president and CEO Daniel Tisch calling for continued development of Ontario’s Critical Minerals Strategy and a comprehensive approach to development that includes Indigenous communities and addresses infrastructure needs.
“To realize the full economic benefits of EV technologies and investments, Ontario will need a vertically integrated supply chain, from minerals in the North to manufacturing in the South,” Tisch said.