ALLISTON — From mining critical minerals to building cars and batteries, Canadian businesses and workers are attracting historic investments to help secure and create jobs, grow our economy, and keep our air clean. In the last four years, automotive and battery makers have announced more than $31 billion in investments in electric vehicle manufacturing across Canada. They want a reliable partner with world-class talent, and this is exactly what we have to offer.
And the world is taking notice.
The Prime Minister, Justin Trudeau, and the Premier of Ontario, Doug Ford, today welcomed Honda Canada’s milestone investment of approximately $15 billion to create Canada’s first comprehensive electric vehicle supply chain, located in Ontario.
“Today’s announcement is a game changer for manufacturing in Canada,” Trudeau said. “Honda’s investment is a vote of confidence in Canada, in Canadian auto workers, and in our manufacturing sector. Together, we’re creating good-paying jobs, growing our economy, and keeping our air clean.”
This large-scale project will see four new manufacturing plants in Ontario. Honda will build an innovative and world-class electric vehicle assembly plant – the first of its kind for Honda Motor Co. Ltd. – as well as a new stand-alone battery manufacturing plant at Honda’s facilities in Alliston, Ontario. To complete the supply chain, Honda will also build a cathode active material and precursor (CAM/pCAM) processing plant through a joint venture partnership with POSCO Future M Co., Ltd. and a separator plant through a joint venture partnership with Asahi Kasei Corporation. Once fully operational in 2028, the new assembly plant will produce up to 240,000 vehicles per year.
Honda’s investments in an electric vehicle assembly plant and a battery manufacturing plant in Alliston will create over one thousand well-paying manufacturing jobs in Ontario, with the CAM/pCAM processing plant and separator plant helping to create thousands of additional direct and indirect jobs in Ontario and across Canada, including during the construction phase and across Ontario’s leading auto parts supplier and research and development ecosystems.
This investment is a strong vote of confidence in Canada and Ontario’s highly skilled workers, strong economies, and competitive business environments.
“Today’s historic $15 billion investment by Honda delivers on our government’s promise to bring back manufacturing as part of our plan to rebuild Ontario’s economy, with thousands of good-paying union jobs and economic benefits for workers and families across the province,” Ford said.
Canada’s auto sector has been an engine of economic growth, driving innovation and creating good middle-class jobs. As the demand for electric vehicles continues to grow, we will attract even more investment and position our auto, battery manufacturing, and battery material production industries as global leaders across the entire electric vehicle supply chain, to create economic growth and opportunities now and for generations to come.
In Budget 2024, the federal government announced its intention to introduce the new 10 per cent electric vehicle (EV) Supply Chain investment tax credit, to attract investment across at least three supply chain segments: EV assembly, EV battery productions, and cathode active material production.
