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4mo ago

Honda Pauses $15 Billion EV Investment in Ontario, Citing Market Challenges

The automaker has delayed its electric vehicle supply-chain project by two years due to slowing EV demand and U.S. tariff uncertainties, while current operations in Alliston remain unaffected.

Honda Alliston Ontario plant
An autoworker stands on the production line for the Honda CRV, at a Honda plant in Alliston, Ont., on Wednesday, March 16, 2022. THE CANADIAN PRESS/Chris Young
Image
Honda employees work along the vehicle assembly line before an event announcing plans for a Honda electric vehicle battery plant in Alliston, Ont., on Thursday, April 25, 2024. THE CANADIAN PRESS/Nathan Denette

Overview

  • Honda Canada has postponed its $15 billion EV and battery supply-chain project in Alliston, Ontario, for approximately two years, citing a slowdown in electric vehicle demand and trade uncertainties tied to U.S. tariffs.
  • The delay impacts plans for a retooled assembly plant, a standalone battery facility, and two battery parts plants, which were expected to create 1,000 new jobs and produce 240,000 EVs annually by 2028.
  • The project was backed by $5 billion in combined federal and provincial government subsidies, which have yet to be disbursed.
  • Honda confirmed that the postponement will not affect the current operations or 4,200 jobs at its existing Alliston manufacturing facility.
  • Ontario Premier Doug Ford stated that Honda remains committed to its Canadian operations and expressed optimism about resolving trade tensions with the U.S. to support future EV initiatives.