TORONTO – Honda Canada is set to build an electric vehicle battery plant near its auto manufacturing facility in Alliston, Ont., where it also plans to produce fully electric vehicles, The Canadian Press has learned.
Ford told a First Nations conference that there will be an announcement this week about a new deal he said will be double the size of a Volkswagen deal announced last year. That EV battery plant set to be built in St. Thomas, Ont., comes with a $7-billion capital price tag. The Honda facility will be the third electric vehicle battery plant in Ontario, following in the footsteps of Volkswagen and a Stellantis LG plant in Windsor, and while those two deals involved billions of dollars in production subsidies as a way of competing with the United States’ Inflation Reduction Act subsidies, Honda’s is expected to involve capital commitments and tax credits.
Honda’s deal also involves two key parts suppliers for their batteries — cathodes and separators — with the locations of those facilities elsewhere in Ontario set to be announced at a later date. Around the time of that announcement, conversations began about a larger potential investment into electric vehicles, the sources said, and negotiations began that summer.
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