Prime Minister Justin Trudeau and Ontario Premier Doug Ford have announced a $15 billion investment with Honda Canada to create Canada’s first comprehensive electric vehicle supply chain. The project will see four new manufacturing facilities as well as a new stand-alone battery manufacturing plant at Honda’s facilities in Alliston. To complete the supply chain, Honda will also build a cathode active material and precursor (CAM/pCAM) processing plant through a joint venture partnership with POSCO Future M Co., Ltd. and a separator plant through a joint venture partnership with Asahi Kasei Corporation. Once fully operational in 2028, the new assembly plant will produce up to 240,000 vehicles per year.
“Several years in the making, Honda’s historic investment represents a vote of confidence in Ontario’s status as a leading jurisdiction in the global production and development of electric vehicles, batteries, and battery materials,” said Vic Fedeli, MPP for Nipissing and Ontario’s Minister of Economic Development, Job Creation and Trade. “As our province continues to build a fully integrated end-to-end electric vehicle supply chain, Honda’s investment will play an integral role in advancing the innovative technologies that will define the future of automotive design, while securing thousands of good-paying jobs for workers in Alliston and across the province. Thank you, Honda, for choosing Ontario.”
A news release from Premier Doug Ford’s office states that Honda’s investments in an electric vehicle assembly plant and a battery manufacturing plant in Alliston will create over one thousand well-paying manufacturing jobs in Ontario, with the CAM/pCAM processing plant and separator plant helping to create thousands of additional direct and indirect jobs in Ontario and across Canada, including during the construction phase and across Ontario’s leading auto parts supplier and research and development ecosystems.
“Today’s historic $15 billion investment by Honda delivers on our government’s promise to bring back manufacturing as part of our plan to rebuild Ontario’s economy, with thousands of good-paying union jobs and economic benefits for workers and families across the province,” said Premier Ford. “From our abundant critical minerals in the Ring of Fire to our highly skilled workforce, Ontario has what it takes to secure the jobs of the future as the world leader in electric vehicle manufacturing, with better jobs and bigger paycheques for our world-class workers.”
In its highly criticized 2024 budget, the federal government announced its intention to introduce the new 10 per cent electric vehicle (EV) Supply Chain investment tax credit, to attract investment in EV assembly, EV battery productions and Cathode active material production.
“Today’s announcement is a game changer for manufacturing in Canada. Honda’s investment is a vote of confidence in Canada, in Canadian auto workers, and in our manufacturing sector. Together, we’re creating good-paying jobs, growing our economy, and keeping our air clean,” said Prime Minister Justin Trudeau.
The new EV Supply Chain investment tax credit is the government’s sixth major economic investment tax credit and complements the 30 per cent Clean Technology Manufacturing investment tax credit. The government is focused on delivering all major economic investment tax credits on a priority basis.
It is estimated that Honda’s new investments in eligible EV supply chain segments could benefit from federal support in the range of $2.5 billion through the proposed EV Supply Chain investment tax credit and the proposed Clean Technology Manufacturing investment tax credit. In addition, the Government of Ontario will provide support of up to $2.5 billion for these segments through various direct and indirect incentives.
Ontario Greens Leader Mike Schreiner released the following statement in response to news that Honda will expand its Alliston plant.
“If this government is serious about Ontario’s electric vehicle future, it will come to the table with measures to make EVs more affordable and invest in cleaner, cheaper renewables to power the electrification of our province. Greens welcome the growth of Ontario’s electric vehicle manufacturing industry. But any investment this government makes in growing our EV sector needs to be complimented by policies that make it possible for ordinary Ontarians to actually buy and use EVs. Yet one of the first things the Ford government did upon taking office was cancel the rebates that made EVs more affordable for the people of this province. Earlier this month, it missed an opportunity to update the building code to ensure that new home builds had EV charging capacity. Still to this day, it’s threatening Ontario’s clean grid competitive advantage by ramping up expensive, dirty fossil gas plants. Without a serious commitment to Ontario’s clean energy future, the Premier is putting the future of these investments at risk.”
Planning for Honda’s new facilities in Alliston is expected to be finalized in the next six months. The company employs over 4,200 people in Alliston and has a network of more than 280 dealerships across the country.
Please watch our videos for statements from Deputy Prime Minister Chrystia Freeland and Nipissing MPP Vic Fedeli, Minister of Economic Development, Job Creation and Trade. You can also watch the Q & A with Prime Minister Justin Trudeau and Premier Doug Ford addressing protecting Canadian jobs and the announcement’s potential impact on Northern Ontario’s Ring Of Fire.
