Honda Motor Mulls $14B Investment to Build New EV Plant in Canada

Honda Motor Co., Ltd. is reportedly looking to build a production plant for electric vehicles in Canada. The Japanese automobile company plans to invest ¥2 trillion, about $14 billion, for this project.

As per Reuters, this EV plant in Canada could be one of Honda's largest investments, but the company has declined to confirm this, saying it cannot disclose anything at this time. The new factory may include in-house battery production based on the circulating reports.

Investment in Canada

While Honda has yet to answer inquiries or issue a statement regarding the reported investments, the office of Canada's industry ministry told Reuters that the reports about Honda's supposed plans to make a significant investment in the country attest to the quality of Canada's workforce and robustness of its industry.

Honda Motor has no direct confirmation regarding its plans to spend billions to construct a new EV plant in the country, but it already has plans to start production and sales of EVs in North America by the year 2026.

Canadian Government Welcomes Reports of Honda's EV Plans

The Globe And Mail reported that the Canadian federal government is welcoming reports that Honda is looking to build an EV plant and considering Canada as the location. This is good news for the country because it will help it become a leader in the EV market.

Minister François-Philippe Champagne of the Ministry of Innovation, Science and Industry said that the fact that Honda is considering Canada is already "a testament to Canada's growing reputation as a green supplier of choice and global EV leader."

"Reports about Honda looking to make a significant investment in Canada speaks to the quality of workforce and the strength of our industry," the minister stated. "We will continue to work tirelessly to position Canada's auto sector for the 21st-century economy."

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