(Alliston) Japanese media reports that automaker Honda could invest up to $18.4 billion to set up an electric vehicle factory in Canada.
The Nikkei Asia media outlet specifies that the company is juggling the idea of building a vehicle factory and a battery factory in the hope of catching up in the electric vehicle market.
Several locations would be studied by Honda as part of this project, including the one where its Alliston, Ontario factory is already located.
A decision would be made by the end of the year, according to Nikkei Asia.
Honda, which did not immediately respond to a request for comment, has already reached an agreement with LG Solution to build an electric vehicle battery factory in Ohio, United States.
But in Canada, Honda could choose to go it alone, according to Nikkei Asia.
LG has already partnered with Stellantis, another automaker, to build a battery factory in Windsor, still in Ontario. This is one of several major investments in electric vehicles that have been announced in recent months in Canada, most of which are associated with significant subsidies.
In its article, Nikkei Asia highlights that the abundance of renewable energy is one of the reasons why Honda is considering setting up a new factory in Canada.
In December, the federal government confirmed that all new passenger vehicles sold in Canada in 2035 must be electric.