Honda is reportedly looking to proceed with its $14 billion electric vehicle plan in Canada in an effort to rival US and European competitors in the EV market, according to Nikkei Asia.
The Japanese automaker is currently considering several potential spots for its EV production plant near the US such as the province of Ontario.
A decision on the matter is expected to be finalized by the end of 2024 with the new facility scheduled to start operating as early as 2028, including possible manufacturing of in-house EV batteries.
The news came after Canada announced to effectively end sales of new private vehicles that still run using diesel and engine by 2035.
Honda Joins the EV Market in North America
Honda has been ramping up its EV lines as North America and Europe transition to electric cars to curb carbon footprints.
The passenger automaker aims to capture nearly 40% of its worldwide customers in North America as it delivers more eco-friendly vehicles.
Honda has already started taking steps into the EV industry with its plans to mass-produce EV batteries with South Korea's LG Energy Solution in Ohio starting in 2025.
Sony has also inked a deal with Honda to distribute its first EVs in the US as early as 2026.
Market for EVs in the US, Canada
As of writing, over 2 million EVs are currently registered in the US, while Canada has contributed with more than 16,000 EVs in the past couple of years.
This influx of EVs has been pushed by the government, primarily with the US providing subsidies for car owners to switch to EVs.
With the production plant planned to be close to the US borders and operate in both countries, Honda seeks to be eligible for US support as it looks to increase market in the region up to 80% of its worldwide sales.
