Honda Announces $15B Investment in Ontario for EV Plants

Nikita Pradhan
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The Japanese automaker Honda will invest a total of 15 thousand dollars in electric vehicles, which will be spent on building four new manufacturing plants in the province of Ontario. Canadian Prime Minister Justin Trudeau and Ontario Premier Doug Ford announced this on January thirtieth.

As reported by the government through a media announcement prior to the propelling of the deal, the agreement brings to the fore “Canada’s first comprehensive electric vehicle supply chain”.

Components of the Agreement

To start with, Honda’s agreement includes the construction of an electric vehicle assembly facility being the first of its kind, as well as a new stand-alone EV battery plant at Honda’s facility in Alliston, Ont.

The statement also noted that Honda will construct the CAM/pCAM processing facility through a joint venture partnership with POSCO Future M and also, the separator plant through a joint venture partnership with Asahi Kasei.

When it is operational by the year 2028, this assembly plant will be producing 240,000 autos annually with employment opportunities of above 1000 well-paying jobs, according to the statement.

He termed this transaction the “biggest ever auto investment in Canada”, and added that Canada’s supreme advantage in resources helped seal this deal but that country’s greatest resource was well-trained personnel.

“The best jobs available in this country are filled by the workers who Canada offers to the rest of the globe. And if you ask me, they are the best in the world.”

Government Support and Incentives

Ford promised that it was a “game changer for the industry” and a” tremendous win for Ontario” and that his government is providing direct and indirect incentives worth $2.5 billion under this deal.

“China is now the first major supplier of this supply chain, global ranking since” Ford announced. Under this new Honda deal, Ontario has reached a total of $43 billion “auto and EV investment” within three years, according to the premier.

Another great marketing strategy involves the Finance Minister and Deputy Prime Minister Chrystia Freeland presenting federal tax credits that were created to attract EV investment in Canada at a public announcement in Alliston.

Honda’s Investment Plan

“The integration of these two significant tax incentive programs as the EV Supply Chain Investment Tax Credit and the Clean Technology Manufacturing Investment Tax Credit will amount to Honda and its partners earning $2.5 billion in support from the federal government,” she said.

Honda CEO Toshihiro Mibe told reporters in Alliston that his firm’s investment plan for the amount of $15 billion disclosure will last for the next half year.

“This tax credit is aimed at the encouragement of EV supply chain investment for which Honda is planned to be the first automaker that benefits from this program.”

As quoted in the statement, Honda adds that the creation of 1,000 new manufacturing jobs would restore the previous level of employment that was lost when the two manufacturing facilities in Ontario closed in 2007. this was at 4,200 associate workers.

Last Updated on by Nikita Pradhan

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