Honda Motor Co. said Thursday it aims to build a new electric vehicle factory in Canada, with its planned investment reaching about 15 billion Canadian dollars ($11 billion) including an EV battery plant.
The Japanese automaker has started talks with the Canadian authorities to receive subsidies for the project in Ontario. Honda's actual investment in creating an EV supply chain in Canada is expected to be 60 to 70 percent of the total, as material suppliers will also share the costs.
Honda plans to start production at the new EV plant, which will be the second of its kind in North America, in 2028.
The move comes as the company's presence in North America, which accounts for about 40 percent of its global car sales, has been overshadowed by a rise in EVs, such as those made by U.S. EV giant Tesla Inc.
The new plant is expected to help Honda achieve its goal of making its EVs and hydrogen-driven fuel-cell vehicles account for 40 percent of sales in the region by 2030, rising to 100 percent by 2040.
Honda is currently retooling its existing factory in Ohio in the United States so it can produce all-electric vehicles from 2025.
