In a statement issued on Friday in Alliston, Ontario, the company said it would be backing a global initiative to make BEVs and fuel cell electric vehicles (FCEVs) represent its total output of sales by 2040, investing about C$15 billion (US$11 billion, A$16.79 billion) along with its joint venture partners to build a comprehensive electric vehicle value chain in Canada.

The company said it expected EV production would begin in 2028. "Once fully operational, the EV plant will have a production capacity of 240,000 EVs per year and the EV battery plant will have a capacity of 36 GWh per year," it said.

"In addition to securing the current employment level of 4200 associates at its two existing manufacturing facilities in Ontario, Honda estimates it will add a minimum of 1000 new associates for the EV and EV battery manufacturing facilities.

Honda was founded in Japan by the late Soishiro Honda, an engineering genius, who is known for the fact that he would come to the factory and ride every single motorcycle out by himself. He died in 1991, but the company continues to lead the way in testing innovations first among all the automobile companies.

Canadian Prime Minister Justin Trudeau (centre) with Toshihiro Mibe, president and chief executive of Honda Motor (second from left), at Honda of Canada Manufacturing, where the company announced a C$15-billion investment to build a comprehensive electric vehicle value chain in Canada. Courtesy Honda

The company said it would be striving to realise carbon neutrality for all its products and corporate activities by 2050. "To achieve this goal, Honda would continue offering attractive products in this electrified era globally, including its largest market of North America," it said.

As the first step, Honda has positioned its existing auto production plants in Ohio as its EV Hub for production, including the retooling of existing plants, an investment of US$700 million, and the construction of a joint venture EV battery plant with LG Energy Solution, with an expected investment of US$4.4 billion.

The company said this Ohio EV hub would serve as the foundation for future EV and EV battery production, sharing knowledge and expertise with other Honda plants in North America, including the new EV assembly and battery plants in Ontario. Honda expects EV production to begin at the Marysville Auto Plant in late 2025.

As a second step, Honda says it would strive to establish a comprehensive EV value chain that includes all aspects of EV production in Canada, from the procurement of raw materials mainly for batteries, to the production of finished EVs.

The company plans to leverage EV production knowledge learned at the Ohio EV Hub, combined with the abundant resources and clean energy available in Canada, to establish a stable supply system for batteries, the key component of EVs, and increase cost competitiveness of its EVs as a whole.

Plus, with an eye toward secondary use and the recycling of batteries, Honda says it will realise low-carbon value creation throughout the entire battery lifecycle, through which it will establish a highly profitable business foundation and contribute to the realisation of a carbon-neutral society.

Honda global chief executive Toshihiro Mibe said: “Honda is making progress in our global initiatives toward the realisation of our 2050 carbon neutrality goal. In North America, following the initiative to establish our EV production system capability in the US, we will now begin formal discussions toward the establishment of a comprehensive EV value chain here in Canada, with the support of the governments of Canada and Ontario. We will strengthen our EV supply system and capability with an eye toward a future increase in EV demand in North America.”

Jean Marc Leclerc, president and chief executive of Honda Canada, added: “Honda of Canada Manufacturing is one of the premier automotive manufacturing facilities in the world and for nearly 40 years, our work has been guided by determination, innovation, and a relentless drive to evolve.

"Today's announcement is a historic investment by a manufacturer in the Canadian auto industry. It proudly honours the highly skilled associates who have earned a global reputation for manufacturing excellence and represents Honda’s recognition of the long-term attractiveness of the Canadian electric vehicle manufacturing ecosystem.”