A Canadian government source familiar with the details revealed that Honda, the Japanese automotive titan, is slated to launch a new electric vehicle manufacturing facility in eastern Canada. This multibillion-dollar initiative will be located in Alliston, just an hour outside of Toronto, and is poised to produce not only vehicles but also electric-vehicle batteries, aligning with the operations of established Volkswagen and Stellantis battery plants.
The plant’s establishment is supported by financial incentives from both the federal government and the province of Ontario, according to the anonymous source. Ontario Premier Doug Ford alluded to the project on Monday, describing it as a landmark deal set to be “the largest deal in Canadian history” and notably “double the size of Volkswagen,” which committed Can$7 billion (US$5 billion) last year for a similar facility.
The formal announcement is scheduled for Thursday. This move is part of Canada’s broader effort to become a hub for electric vehicle production, leveraging its tax incentives, access to renewable energy, and rich deposits of rare minerals essential for this technology.
Earlier in January, the Japanese press, including the Nikkei newspaper, speculated the deal to be worth around Can$14 billion—a figure that Canadian officials have since corroborated. Adding to the momentum, the federal budget recently unveiled by Prime Minister Justin Trudeau introduced a new business tax credit offering a 10 per cent rebate on construction costs for new buildings pivotal to the electric vehicle supply chain, mirroring incentive strategies from the United States outlined in the Inflation Reduction Act.
Honda’s commitment to this plant aligns with its broader environmental goals, aiming to exclusively sell zero-emission vehicles by 2040 and achieve carbon neutrality in its operations by 2050.
