Honda Invests $11 Billion In Canadian EV Value Chain

- Advertisement -

As part of its strategy to establish eco-friendly EV and battery facilities in Ontario, Honda’s EV value chain will cover every stage of EV production in Canada, from sourcing primarily battery-related raw materials to manufacturing completed EVs.

Honda Motor Co. is set to establish a comprehensive EV value chain in Canada with a projected investment of approximately CAD$15 billion / US $11 billion (Rs 91,275 crore), which includes contributions from joint venture partners. This investment is aimed at enhancing its EV supply system and boosting its capabilities in anticipation of a surge in EV demand across North America. The Japanese automaker has initiated evaluations to construct a cutting-edge, environmentally sustainable Honda EV plant alongside a dedicated Honda EV battery facility in Alliston, Ontario. Additionally, the planned value chain will feature a cathode active material and precursor (CAM/pCAM) processing plant through a partnership with POSCO Future M Co and a separator plant in collaboration with Asahi Kasei Corporation, with further details to be announced in the respective communities in Ontario.

Honda anticipates the commencement of EV production by 2028. Once operational, the EV plant is expected to produce 240,000 EVs annually, while the battery facility will have a capacity of 36 GWh per year. Besides maintaining the current workforce of 4,200 associates at its two existing manufacturing sites in Ontario, Honda projects the addition of at least 1,000 new jobs at the new EV and battery production facilities. This expansion is also expected to generate considerable ancillary employment opportunities, including in construction.

- Advertisement -

Honda’s North American EV Strategy:

Honda has committed to having battery electric vehicles (BEVs) and fuel cell electric vehicles (FCEVs) constitute 100% of its vehicle sales by 2040. In pursuit of this target, it plans to persist in offering electrified products globally, particularly in its largest market, North America.

As an initial step towards this electrification aim, Honda has designated its existing automobile manufacturing facilities in Ohio, USA, as its central EV Hub. This hub will oversee the production and retooling of EVs, including an investment of USD$700 million and the construction of a joint venture EV battery plant with LG Energy Solution, anticipated to involve an investment of US$4.4 billion.

The Ohio EV hub will lay the groundwork for future EV and battery production, facilitating the sharing of knowledge and expertise with other Honda facilities in North America, including the new assembly and battery plants in Ontario, Canada. EV production is expected to begin at the Marysville Auto Plant by late 2025.

In a subsequent phase, Honda aims to leverage the expertise acquired at the Ohio EV Hub and Canada’s rich resources and clean energy to establish a stable, cost-effective battery supply system. This initiative will encompass all stages of EV production in Canada, from raw material procurement, particularly for batteries, to the final assembly of EVs.

Moreover, Honda is focusing on the secondary use and recycling of batteries to promote low-carbon value creation throughout the entire battery lifecycle. Through these efforts, Honda aspires to build a highly profitable business infrastructure and contribute towards achieving a carbon-neutral society.

- Advertisement -

Most Popular Articles

Aryaman Raghuvanshi
Aryaman Raghuvanshi
Aryaman Raghuvanshi is a Journalist at EFY. His passion is to explore the future of mobility, which gets him to cover latest technologies shaping the future of automobiles and EVs. But, at times he writes on broader technologies too. LinkedIn: https://www.linkedin.com/in/aryaman-raghuvanshi-2431b7153

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Exclusive

Crompton Greaves Starts Kitchen Appliance Manufacturing In Vadodara

0
This move aims to boost product quality and operational efficiency, enhancing the delivery of innovative, high-quality kitchen solutions to meet growing consumer demands. Crompton Greaves...

Advancing  Manufacturing Sector With New Refrigerator Plant

0
By incorporating advanced backward integration processes, this plant sets to redefine industry standards, promising improved efficiency and reduced environmental impact, while also boosting local...

EV Sales In India Fall Face First From March to April 2024

0
Electric Vehicle sales, across segments, have fallen short of the promise the sector was witnessing over the last few months. Despite the extension of FAME scheme for...

Buzz

India Eyes $250M Private-Public Cloud Model For Semiconductor R&D

0
According to the plan, this facility will offer easy access to chip and packaging designs for startups, researchers, and small firms. The Indian government is...

EV Parts Maker Matel Raises $4M

0
Matel manufactures components such as power trains and motor control units for electric vehicles. In this funding round, investors included Gruhas, backed by Nikhil...
Siemens and CSA

Siemens To Sell Innomotics To KPS For $3.8B

0
Siemens chief financial officer Ralf Thomas expressed his pleasure at the significant progress made in optimizing their portfolio through the sale of Innomotics to...

Important Sectors

Automotive Electronics Industry Growth Prospects And Strategies

0
From electric vehicles (EVs) to autonomous vehicles, discover the challenges, key players, and market segments driving a $136 billion industry revolutionising vehicles and the...

India Eyes $250M Private-Public Cloud Model For Semiconductor R&D

0
According to the plan, this facility will offer easy access to chip and packaging designs for startups, researchers, and small firms. The Indian government is...

EV Parts Maker Matel Raises $4M

0
Matel manufactures components such as power trains and motor control units for electric vehicles. In this funding round, investors included Gruhas, backed by Nikhil...
Siemens and CSA

Siemens To Sell Innomotics To KPS For $3.8B

0
Siemens chief financial officer Ralf Thomas expressed his pleasure at the significant progress made in optimizing their portfolio through the sale of Innomotics to...

Ampere Teams With Qualcomm On AI, Unveils New Chip

0
Ampere Computing and Qualcomm team up to create energy-efficient AI chips, launching a data center server aimed at reducing power consumption and outpacing rivals...

Manufacturing

Automotive Electronics Industry Growth Prospects And Strategies

0
From electric vehicles (EVs) to autonomous vehicles, discover the challenges, key players, and market segments driving a $136 billion industry revolutionising vehicles and the...
Siemens and CSA

Siemens To Sell Innomotics To KPS For $3.8B

0
Siemens chief financial officer Ralf Thomas expressed his pleasure at the significant progress made in optimizing their portfolio through the sale of Innomotics to...
Siemens and CSA

Siemens Limited Announces ₹1000 Crore Capex

0
In a statement, Siemens announced that it is expanding its factory operations in Goa to address the rapidly growing demand for essential industry components. Siemens...

Atul Aggarwal Named New Managing Director Of Sterling Tools

0
In his new position, Atul Aggarwal, who serves as a whole-time director as well, will lead the company's expansion and development into new verticals. Sterling...
Sona Comstar

Sona Comstar’s 3-Pronged Global Strategy To Outperform China In EV Parts Supply

0
Sona BLW Precision Forgings (Sona Comstar) has adopted a three-pronged strategy: leveraging the protectionist policies of the US and Indian governments to exclude Chinese...