Honda to get up to $5B in govt help for EV battery, assembly plants
CTV
Honda is set to build an electric vehicle battery plant next to its Alliston, Ont., assembly plant, which it is retooling to produce fully electric vehicles, all part of a $15-billion project that is expected to include up to $5 billion in public money.
Honda is set to build an electric vehicle battery plant next to its Alliston, Ont., assembly plant, which it is retooling to produce fully electric vehicles, all part of a $15-billion project that is expected to include up to $5 billion in public money.
The two plants are expected to create 1,000 jobs on top of retaining the existing 4,200 jobs at the assembly plant.
The deal does not involve production subsidies, which were used to woo two other automakers to build battery plants in Ontario instead of the United States with its incentives under the Inflation Reduction Act.
But the federal government is expected to give the Japanese automaker around $2.5 billion through tax credits for clean technology manufacturing and electric vehicle supply chain investments.
Ontario has committed to providing up to $2.5 billion directly – such as for capital costs – and indirectly, such as covering site servicing costs.
The $15-billion project includes the retooled plant, an electric vehicle battery plant nearby, as well as two key battery parts facilities – for cathodes and separators – located elsewhere in Ontario.
The Honda facility will be the third electric vehicle battery plant in Ontario, following in the footsteps of Volkswagen in St. Thomas and a Stellantis LG plant in Windsor.
