Senior sources with information on the project have told The Canadian Press that Honda is also retooling its assembly plant in Alliston to produce fully electric vehicles.
There will likely be some capital investment from at least one level of government, but the sources say the deal does not involve production subsidies, which were used to woo two other automakers to build battery plants in Ontario instead of the United States with its incentives under the Inflation Reduction Act.
The Honda facility will be the third electric vehicle battery plant in Ontario, following in the footsteps of Volkswagen in St. Thomas and a Stellantis LG plant in Windsor. The deal comes after years of meetings and discussions between Honda executives and the Ontario government that began after the last big government announcement at Honda's Alliston facility.
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