‘Game changer’: Federal, Ontario governments announce Honda Canada’s $15 billion deal for EV supply chain
THE CANADIAN PRESS/Nathan Denette
Prime Minister Justin Trudeau (left to right), Honda executive Toshihiro Mibe and Ontario Premier Doug Ford walk along an assembly line at an event announcing plans for a Honda electric vehicle battery plant in Alliston, Ont. on Thursday, April 25, 2024.
The federal and Ontario governments announced Honda Canada is making a “milestone” investment of $15 billion to create an electric vehicle supply chain in the province.
Making the announcement in Alliston, Ont., Prime Minister Justin Trudeau called it “the largest auto investment in Canada’s history.” He said it will build the country’s first comprehensive electric vehicle supply chain, from start to finish.
The investment will see four new manufacturing plants in Ontario; an electric vehicle assembly plant – the first of its kind for Honda Motor Co., Ltd. – as well as a new stand-alone battery manufacturing plant and two others for battery components. The plants are expected to create thousands of jobs.
“It’s a very big day for the region, the province and the country,” Trudeau said.
Ontario Premier Doug Ford called the deal a “game changer” for the industry and thanked Honda for the “tremendous confidence in the province and workers.”
Honda’s is expected to receive $2.5 billion through the federal government’s proposed EV Supply Chain investment tax credit and the proposed Clean Technology Manufacturing investment tax credit.
The Ontario government will also provide about $2.5 billion through various direct and indirect incentives.
Headquartered in Tokyo, Honda was the first Japanese automaker to produce cars in Canada. It established Honda Canada in 1969 and started production in Alliston in 1986.
According to federal government figures, Canada’s auto sector builds more than 1.5 million vehicles each year, provides 550,000 direct and indirect jobs and contributed about $18 billion to Canada’s GDP last year.
