May 13, 2024 - 17:31
By cbc.ca

Honda Canada picks Port Colborne, Ont., for next plant in EV supply chain

The next community set for a massive boost to its local economy as part of Honda Canada's $15-billion investment to establish a Canadian electric vehicle supply chain will be Port Colborne, Ont.

Company executives are expected to join Prime Minister Justin Trudeau and Ontario Premier Doug Ford, as well as federal Innovation Minister François-Philippe Champagne and Ontario's economic development minister, Vic Fedeli, and municipal leaders at an official announcement on Tuesday.

On April 25, Honda announced a major expansion of its original Canadian facility in Alliston, Ont., to both manufacture batteries and assemble electric vehicle versions of its top-selling brands. On the same day, Japan's Asahi Kasei Corporation announced a new partnership with Honda to build Canada's first-ever lithium ion battery separator plant in Ontario — but the municipality that was the successful bidder for this facility was not revealed.

iPolitics was the first to report that Honda would announce a facility in Ontario's Niagara Region. Over the weekend, word spread on social media that Port Colborne was chosen. A senior government source confirmed the location to CBC News on Monday.

Asahi Kasei's announcement last month said Honda's partner is investing nearly $1.6 billion in this separator facility.

The federal and provincial governments each contributed $2.5 billion in tax credits and other government incentives to attract Honda's business to Ontario amid fierce global competition for new electric vehicle manufacturing investments.

Both levels of government have yet to detail what share of these taxpayer incentives helped secure the Port Colborne plant specifically.