ALLISTON, Ont. — A Japanese news outlet is reporting that Honda Motor Co. Ltd. could invest upwards of $18.4 billion in an electric vehicle plant in Canada.
Nikkei Asia says the company is considering building both a vehicle and battery plant as part of efforts to catch up in the electric vehicle market.
The report says Honda is looking at several sites, including next to its existing plant in Alliston, Ont., with a potential investment decision expected by the end of the year.
Honda, which did not immediately respond to a request for comment, has an agreement in place to build an electric vehicle battery plant in Ohio with LG Solution, but the report says the company might go it alone in Canada.
LG is already in a partnership with automaker Stellantis to build a $5 billion battery plant in Windsor, Ont., one of numerous major EV investments Canada has drawn after offering generous subsidies.
The Nikkei report says the abundance of renewable energy in the country is part of the reason Honda is considering Canada, while in December the federal government mandated that all passenger vehicle sales would be electric by 2035.
This report by The Canadian Press was first published Jan. 7, 2024.
The Canadian Press
