Toronto, Ontario -- Honda Canada is postponing plans to launch a $15-billion electric vehicle investment project in Ontario, citing a slowdown in the EV market.
Unveiled in April 2024, the project aimed to establish a comprehensive EV value chain in Canada. It would have involve the retooling of an existing vehicle assembly plant in Alliston and the development of an adjacent EV battery plant as well as two additional battery parts facilities elsewhere in the province.
As recently as last month, the OEM provided assurances the project would bring 1,000 new jobs to Ontario. These positions were not expected to affect the 4,200 existing positions at Honda's Alliston manufacturing plant. Once operational, the facility aimed to produce up to 240,000 vehicles annually by 2028.
A spokesman for the OEM said the company will continue to evaluate the timing and progression of the project as market conditions evolve. Operations at the existing Alliston plant have not been affected by the postponement.
The federal and Ontario governments pledged about $2.5 billion in support through tax credits and other aid for the project to the project.
