Honda Canada selects Port Colborne, Ontario as location for upcoming plant in electric vehicle supply chain

Port Colborne, Ont., is set to receive a massive economic boost as part of Honda Canada’s $15-billion investment to establish a Canadian electric vehicle supply chain. The announcement, scheduled for Tuesday, will see company executives, Prime Minister Justin Trudeau, Ontario Premier Doug Ford, federal Innovation Minister François-Philippe Champagne, Ontario’s economic development minister Vic Fedeli, and municipal leaders coming together for the official unveiling.

Honda’s expansion in Alliston, Ont., will include manufacturing batteries and assembling electric vehicle versions of its popular brands. Asahi Kasei Corporation, in partnership with Honda, will also build Canada’s first lithium-ion battery separator plant in Ontario. While the location of this facility was initially undisclosed, it has now been confirmed that Port Colborne will be the chosen municipality.

The federal and provincial governments have provided significant incentives to attract Honda’s business to Ontario, with tax credits and other benefits totaling $5 billion. The specific details of the incentives securing the Port Colborne plant have not yet been revealed.

With the establishment of a vertically integrated supply chain in Ontario, Honda aims to reduce battery-making costs by 20%. The province’s existing network of automotive parts suppliers, clean electricity grid, and easy access to the American consumer market make it an attractive location for such investments.

The upcoming announcement of another joint venture with South Korea’s POSCO Future M Co., Ltd., for a cathode active material and precursor processing plant, further solidifies Ontario’s position as a key player in the electric vehicle industry. The trade deal between Canada and Japan also provides additional benefits for regional manufacturing, making Ontario an ideal location for Honda’s ambitious plans.