Honda plans to invest $11 billion to manufacture electric vehicles and battery packs in Canada.

Honda Will Spend $11B To Build EVs, Battery Packs In Canada

Honda has officially announced its plans to expand its manufacturing operations in Canada in order to produce Electric vehicles. This expansion involves an $11 billion investment, marking the largest automotive investment in Canada’s history. The new plants will be located near the existing manufacturing campus in Alliston, Ontario, with the goal of commencing EV production in 2027.

The investment will result in the construction of four new manufacturing facilities: one for electric vehicles, one for battery packs, and two for battery component production. Honda aims to establish a complete local EV supply chain to ensure the competitiveness and environmental sustainability of its EVs (with plans to only produce EVs and FCEVs after 2040 and target net zero CO2 emissions by 2050).

The new EV assembly plant is expected to produce 240,000 vehicles annually, while the battery plant will have a capacity of 36 gigawatt-hours of EV batteries per year. This expansion will create an additional 1,000 jobs on top of the existing 4,200 employees.

Currently, Honda manufactures the CR-V and Civic in Canada, with plans to introduce at least two new models by 2028. Speculations suggest that the first vehicle to come out of the new plant will be a small Honda electric crossover in 2027, followed by a larger Acura electric crossover in 2028. These new models will be based on a bespoke EV architecture introduced in 2025, as opposed to the current Honda Prologue built by General Motors.

Furthermore, Honda recently unveiled a series of concept vehicles that will inspire its new line of EVs. The Saloon concept, resembling a handheld vacuum cleaner, will be the inspiration for the production model called the Honda 0. This model will be Honda’s first “next-generation” EV and will set the design foundation for future models, including the crossover scheduled for production in Ontario in 2027. Honda also plans to transform its Ohio facilities in the US into an “EV hub” for electric vehicle production starting in 2025.