Honda nears $7 billion EV battery plant setup in Ontario

Honda could announce its new electric vehicle (EV) battery manufacturing plant in Ontario, Canada by this week reports local media sources. This news comes amid the Japanese automaker and the Canadian government held several rounds of conversation for over a year.

It revealed that the company has finalized its location and terms with the government. However, the amount of investment figure is not disclosed.

Ontario Premier Doug Ford told a First Nations conference that there will be an announcement this week about a new deal that he said will be double the size of a Volkswagen deal from last year. The deal is expected to be built in St. Thomas, Ontario with a capital price tag of $7 billion.

Honda’s new facility will be the third electric vehicle battery plant in Ontario, which also hosts giants including Volkswagen and Stellantis. Unlike its competitors, Honda is aiming for maximum support and tax credits from the Canadian government.

Canada has recently announced its budget for 2023-24 and included a 10 percent EV supply chain investment tax credit on the cost of building such products and setting up business for assembly, battery production, and cathode active material production.

This is an addition to the existing 30 percent Clean Technology Manufacturing investment tax credit on the cost of investments in new machines and equipment. This new plant involves two key parts suppliers including cathodes and separators.

(source)