Question Period Note: DELAYS IN HONDA EV-BATTERY PROJECT

Why are there delays to Honda’s electric vehicle (EV) supply chain project and what is the Government of Canada doing to ensure this and other EV investments are successful?

• Over the past few years, Canada attracted major investment related to the production of batteries and electric vehicles (EVs).
• In order to secure the future of the Canadian automotive industry, the Government of Canada has been an active partner in these projects.
• While the global shift to EV shift is not in question, the pace and timing of that transition depends on many factors, including consumer demand.
• Some companies have adjusted the timelines of their projects to align with changing market conditions.
• Honda’s decision to delay has no impact on current jobs or production at their plant in Alliston, Ontario.

• Canada’s automotive industry is one of the country’s largest manufacturing sectors, anchored around five global automotive companies, Stellantis, Ford, General Motors, Toyota, and Honda, that are supported by a diverse supply chain of nearly 700 automotive parts manufacturers across Canada.
• Delays announced by companies will postpone the completion of a few projects, some of which are or will be supported by the Government of Canada. Announced delays vary between one and two years depending on the project.
• The government continues to work with companies like Honda to ensure Canada’s automotive sector remains strong and uniquely positioned to design and build the cars of today and tomorrow.
• For more information on the status of a specific project, please contact the companies directly.

In 2024, the automotive sector contributed $16.8 billion to Canada’s GDP, directly employed over 125,000 workers and supported over 427,000 indirect jobs. 
The governments of Canada, Ontario and Quebec have worked to attract significant private investments in the electric vehicle (EV) and battery industries since 2020. The Government of Canada has announced its support through various initiatives including Investment Tax Credits (Finance Canada), the Strategic Innovation Fund (Innovation, Science and Economic Development Canada - ISED) and Special Contribution Agreements (ISED).
In April 2024, the government announced support of up to $2.5 billion for Honda’s $15 billion comprehensive EV supply chain project in Ontario, through Investment Tax Credits (Finance Canada). ISED does not provide funding support to this project.
On May 13, 2025, Honda announced that, due to the recent slowdown of the EV market, it is postponing this project for approximately two years, including planned battery and EV assembly plants.
Honda Canada was established in 1969 and started production in 1986 in Allison, Ontario. It currently employs over 4,200 workers.