On April 25, 2024, Canada and Ontario announced a landmark $15 billion investment deal with Honda to expand its Alliston, Ontario facility for electric vehicle (EV) and battery manufacturing, marking the largest single investment in Canada’s auto sector. The deal, revealed by Prime Minister Justin Trudeau and Premier Doug Ford, aims to add 1,000 jobs and significantly bolster Canada's position in the global EV market.

Honda's expansion includes a new EV battery plant and the retooling of its existing car assembly line. The federal government will provide approximately $2.5 billion in tax credits targeting clean technology and EV supply chains, while Ontario pledged up to $2.5 billion in both direct capital costs and indirect incentives like site servicing.

Additional collaborators in this initiative include South Korea's POSCO Future M Co., Ltd and Japan's Asahi Kasei Corp., who will construct facilities in Ontario for key battery components like cathodes and separators.

The initiative is part of a broader strategy by the Canadian government, which has committed up to $33 billion in production subsidies for three major EV battery factories to stimulate full-capacity production as soon as possible. These investments represent a significant shift towards supporting the EV supply chain and transitioning from fossil-fuel-dependent vehicle manufacturing.