Honda introduced immediately that it’s going to spend $11 billion to develop its electrical automobile manufacturing presence in North America. The Japanese automaker already has a variety of factories within the US, Mexico, and Canada, and it is this final one that may profit from the enlargement, with 4 EV-related crops deliberate for Ontario.

Honda says it has begun evaluating necessities for what it is calling an “modern and environmentally accountable” EV manufacturing unit in addition to a standalone EV battery plant, each in Alliston, Ontario, which is already dwelling to Honda’s two present Canadian manufacturing services.

Moreover, the automaker needs to arrange one other two websites as joint ventures. One will probably be a plant that processes cathode energetic supplies and their precursors—the varied parts like nickel and manganese which are mixed with lithium in lithium-ion batteries—arrange in a partnership with POSCO Future M, a South Korean battery materials and chemical firm. (POSCO is already working with Basic Motors on one other three way partnership battery precursor materials facility in Betancour, Quebec, that’s alleged to develop into operational in 2026.)

A second three way partnership will probably be a partnership with Asahi Kasei, which can manufacture battery separators, the fabric that retains the anode and cathode aside. The places of those two joint ventures haven’t but been introduced.

Honda thinks it will likely be in a position to begin making EVs in Ontario in 2028 and says the meeting plant may have the capability to construct 240,000 EVs per yr. In the meantime, the battery plant is deliberate to have an annual output of 36 GWh.

“Honda is making progress in our international initiatives towards the conclusion of our 2050 carbon neutrality aim,” stated Honda CEO Toshihiro Mibe. “In North America, following the initiative to determine our EV manufacturing system functionality within the US, we’ll now start formal discussions towards the institution of a complete EV worth chain right here in Canada, with the help of the governments of Canada and Ontario. We’ll strengthen our EV provide system and functionality with a watch towards a future improve in EV demand in North America.”

These investments in EV manufacturing by Honda are along with $700 million that it has spent retooling a few of its factories in Ohio for electrification, plus a three way partnership battery manufacturing unit with LG Power Options, additionally in Ohio, that has risen in price to $4.4 billion. Honda says it expects to start manufacturing of an electrical sedan, proven off at CES earlier this yr, in Ohio in late 2025. The model at the moment has a single EV for the US market—the Honda Prologue—which shares one in every of GM’s Ultium platforms. It’s also creating an EV with Sony beneath the Afeela model.