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Honda Reportedly Halts C$15 Billion Ontario EV and Battery Project Indefinitely

The unconfirmed freeze highlights Honda’s pivot toward hybrids.

Overview

  • Honda has not officially announced a change, but multiple outlets citing Nikkei report the Alliston, Ontario EV and battery hub is now on indefinite hold.
  • Canadian officials say they are in regular contact with Honda, and Ontario’s economic minister says no public funds will be disbursed unless the project proceeds.
  • The plan, unveiled in April 2024, called for an EV plant capable of 240,000 vehicles a year, a 36 GWh battery factory, and cathode facilities with POSCO Future M and Asahi Kasei.
  • Suppliers have adjusted their timelines, with Asahi Kasei delaying its Ontario materials plant start to 2029 or later after Honda’s earlier pause.
  • Honda has shifted its North American strategy toward hybrids, canceled several EV models, and recorded a one-time charge of about JPY 2.5 trillion as EV demand in the US has cooled.