Honda is set to build an electric vehicle battery plant next to its Alliston assembly plant.
The automaker said it is going to retool the factory to produce fully electric vehicles, all part of a $15-billion project that could include up to $5 billion of taxpayer dollars. The two plants are expected to create 1,000 jobs on top of retaining the existing 4,200 jobs.
The deal does not involve production subsidies, something that played a big role in attracting two other automakers to build battery plants in Windsor and St. Thomas. The United States offers manufacturers with incentives under the Inflation Reduction Act.
The federal government is expected to give Honda close to $2.5 billion through tax credits for clean technology manufacturing and electric vehicle supply chain investments. Ontario has committed $2.5 billion directly to cover capital expenses and today’s announcement also said the province will cover site servicing costs.
The $15-billion project includes the retooled plant, an electric vehicle battery plant in the vicinity, and two battery parts facilities located elsewhere in Ontario. No word yet on where they may be.