Honda Motor Co. will build an integrated electric-vehicle battery supply chain in Canada from the ground up with a series of investments in Ontario worth a combined $15 billion.
This “stable supply system,” he added, will make Honda’s EVs more cost competitive, leading to “a highly profitable business foundation” that will in turn contribute to a carbon-neutral society. Honda will also invest in two joint-venture supplier plants in yet-to-be-disclosed cities elsewhere in the province. One plant with South Korea-based partner Posco Future M will produce precursor and cathode active material for Honda’s battery cells. The other, headed by Japan-based chemical company Asahi Kasei, will produce battery separators. Standalone announcements for both facilities will be made at later dates.
In addition to Volkswagen’s plans, Sweden-based Northvolt said it would build a $7-billion cell plant outside Montreal in September 2023. A joint venture between South Korea battery-cell maker LG Energy Solution and Stellantis made the first battery commitment to Canada in March 2022; the companies are now well into construction on a $5-billion cell site in Windsor, Ont.
“We’ve all come to the conclusion that we have everything in Ontario to offer battery manufacturing plants and component plants,” even without matching the IRA dollar-for-dollar, he told Automotive News Canada.
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