Honda unveils $15B investment plan to build new EV plant in Alliston

Prime Minister Justin Trudeau and Premier Doug Ford visited Alliston on Thursday to unveil a $15 billion investment in an electric vehicle and battery facility.

“This is a historic day with the largest auto investment in Canada’s history,” said Justin Trudeau. “We will be investing to create Canada’s first comprehensive electric vehicle supply chain from start to finish.”

The $15 billion project includes a retooled plant, an electric vehicle battery plant nearby, and two critical battery parts facilities spread throughout the province.

Honda could participate in a recent federal government proposal in the budget to include a 10 per cent Electric Vehicle Supply Chain investment tax credit on top of an existing 30 per cent Clean Technology Manufacturing Investment tax credit.

Premier Doug Ford called the announcement a game-changer.

“Once built and operational, Honda’s massive new electric vehicle plant and battery facility here in Alliston will employ more than 4,200 people,” said Ford.

According to the premier, the facility will generate around 30,000 additional jobs in the industry, as Honda pledges to have 100 per cent electric vehicle sales in North America within 16 years.

“Here in Canada, we are very pleased to begin a new discussion toward achieving this major electrification milestone, which builds on our ongoing projects in the U.S.,” said Honda CEO Toshihiro Mibe.

New Tecumseth mayor Richard Norcross says the deal will help grow Alliston’s population, which is expected to double to around 90,000 residents in the next 25 years.

The Honda facility will be Ontario’s third electric vehicle battery plant, following Volkswagen in St. Thomas and a Stellantis LG plant in Windsor.

“We did make a commitment to build 6,400 more homes locally here in New Tecumseth to help support the workers that’ll be coming for the jobs that are definitely coming,” said New Tecumseth mayor Richard Norcross.

“This is huge for Simcoe County; it’s huge for the province. This is what happens when all three levels of governments work together with an outstanding corporation like the Honda company, and they’re second to none.”

The federal Conservative Cabinet criticizes the deal, saying it gives $5 billion in subsidies to another large multinational corporation and accuses the Prime Minister of selling out Canadian union workers and taxpayers.

Honda intends to start operating the EV plant by 2028: if all goes according to plan they can produce upwards of a million vehicles in the first four years.

With files by CP.