Honda to spend billions on battery component plants in Canada

Honda is planning an $11 billion complex in Alliston, Ontario, to produce electric vehicles, batteries, and battery components. As part of the integrated facility, a potential joint venture with the South Korean firm Posco Future M would make cathode materials and precursors. Honda also hopes to form a partnership with the Japanese firm Asahi Kasei to make battery separators. Starting in 2028, the complex would produce 36 GW·h of batteries per year, enough for approximately 240,000 cars. The projects together could receive up to $3.6 billion in tax credits or government grants. Canada is using these incentives to compete with the generous tax breaks for battery plants in the US granted under the US Inflation Reduction Act. Last year, Posco increased its investment in a joint venture with General Motors that will make cathode materials in Quebec. Umicore, BASF, Northvolt, and a partnership between SK On, EcoPro, and Ford are also building cathode plants in Canada.