Honda considers $14 billion plan for EV production in Canada

Honda Motor Co is considering building an electric vehicle plant in Canada in a near 2 trillion yen ($13.83 billion) project that could possibly include in-house production of batteries, Japan's Nikkei news group reported on Sunday.

The project could be one of Honda's largest investments, the report said.

The Japanese automaker is looking at multiple potential sites for the plant, including next to an existing automobile factory in Ontario, Nikkei said, adding that Honda expects to come to a decision by the end of the year and the new plant to start as soon as 2028.

Honda did not immediately respond to a Reuters request for comment on the report.

Honda already has plans to begin production and sales of EVs in North America in 2026, based on its new Honda e:Architecture.

The automaker, with partner LG Energy Solution had in 2022 announced Ohio as the site of their planned $4.4 billion joint-venture battery plant.

In October 2023, Honda and General Motors said they were scrapping a plan to jointly develop affordable electric vehicles (EVs), a year after they agreed to work together in a $5 billion effort to try to beat Tesla in sales. ($1 = 144.6500 yen)