Japanese automaker Honda has been lagging behind in developing a significant electric vehicle, though its second attempt in the United States, the Prologue. After canceling a partnership with GM to “beat Tesla” with a low-cost SUV, news has now emerged that it is considering building a $14 billion electric vehicle and battery manufacturing facility in Canada.
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According to the Japanese newspaperNikkei, the Japanese auto giant is considering several locations in Canada, including one near its factory in Oliston, Ontario. It is expected to make a decision this year, with production set to begin in 2028.
Under the plan, Honda will produce batteries in-house at the plant, which will be the company’s second electric vehicle plant in North America.
For its part, Canada has been successful in attracting new investment from the electric vehicle industry. Reports say that Canada’s Industry Minister, Francois-Philippe Champagne, has spent much of the past year promoting investment in electric vehicles in order to cement the country’s clean energy, offering tax breaks and the promise of an abundance of renewable energy sources and rare earth minerals used in electric vehicles.
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So far, Volkswagen and battery maker PowerCo are building a gigafactory to produce cells in St. Thomas, Ontario, with production set to begin in 2027. Swedish electric vehicle battery maker Northvolt is also building a zero-emission battery factory in Quebec, a province with access to hydroelectric power and a lithium mine near La Corne. Of course, Canadian-sourced batteries with materials found in Canada will also help the vehicles qualify for federal electric vehicle tax breaks in the U.S.
As for Honda, it has already said it will manufacture batteries with an LG Energy solution in Ohio starting in 2025. It also plans to convert Honda's Ohio factories, aiming to build electric vehicles based on the company's new Honda e in 2026, as reported by Automotive News.
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One of the biggest challenges is the lack of charging infrastructure. Despite the growing popularity of electric cars, the availability of charging stations remains limited, especially in rural areas. Battery range is also an issue. Many electric cars offer limited range compared to traditional fuel-burning cars, which can discourage consumers.
The price of electric cars is also a major factor. Although prices have fallen in recent years, electric cars are still typically more expensive than their fuel-. Finally, the production and recycling of electric car batteries is another issue. The production of these batteries is energy-intensive and can have a significant impact on the environment, while their recycling is still an open issue.
Source: electrek
