Design Engineering

$1.6B parts plant for Honda electric vehicle batteries coming to Niagara Region

The Canadian Press   

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Honda employees work along the vehicle assembly line in Alliston, Ont., on Thursday, April 25, 2024. (THE CANADIAN PRESS/Nathan Denette)

A Japanese company has announced it will build an approximately $1.6-billion plant in Ontario’s Niagara Region that will make a key electric vehicle battery component as part of Honda’s supply chain in the province.

Honda announced recently that it is building an electric vehicle battery plant next to its Alliston, Ont., assembly plant, which it is retooling to produce fully electric vehicles as part of a $15-billion project to create a supply chain in the province for the automaker.

The location for part of that supply chain was announced today in Port Colborne, Ont.

Asahi Kasei says its plant where it will build battery separators is expected to be up and running by 2027.


Another company, POSCO Future M Co., Ltd., is set to build a cathode active material and precursor processing plant, but the location for that facility has not yet been announced.

The overall Honda deal includes up to $5 billion in public funds and the separator plant is expected to benefit from the federal Clean Technology Manufacturing investment tax credit and both direct and indirect support from the province.


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