Japanese car marker Honda is expected to announce a multi-billion dollar deal to build electric vehicles and their parts in the province of Ontario, government sources confirmed to CBC News.
The news was first reported by Bloomberg.
Senior government sources, who spoke to CBC News on condition of confidentiality because they weren’t authorized to speak publicly, said the anticipated deal would involve new facilities to process cathode active materials, build batteries, and assemble battery-powered vehicles.
The sources said the announcement is expected to be made in Alliston, Ont., Thursday, when questions around the extent of government subsides could become public.
Last week’s budget has yet to pass parliament, but previewed a EV supply chain investment tax credit that likely acted as a sweetener for Honda. The government is proposing a 10 per cent tax credit on the cost of buildings used in three keys area of the EV supply chain: assembly, battery production and cathode active material production.
“Honda does not make speculative term bets,” said Automotive Parts Manufacturers’ Association president Flavio Volpe, reacting to the news.
“In almost 40 years of making cars in Canada without failure or retreat, a Honda supply contract is extremely bankable.”