The Canadian government allocates 5 billion yuan to subsidize Japanese car companies in manufacturing electric vehicles and batteries
Japanese automaker Honda will build an electric vehicle battery plant near its factory in Alliston, Ontario, and renovate its existing assembly plant to produce fully electric vehicles. The total investment of this project is 15 billion yuan, of which 5 billion yuan is expected to be provided by the government as public funds.
These two factories are expected to create 1000 job positions, while the existing assembly factory will retain 4200 job positions.
The federal government is expected to provide Honda with approximately 2.5 billion yuan through tax credits for clean technology manufacturing and investment in the electric vehicle supply chain.
The Ontario government has promised to provide up to 2.5 billion yuan in direct funding, such as capital costs, as well as indirect funding, such as paying for factory service expenses.
This 15 billion yuan project includes the renovation of a factory, a nearby electric vehicle battery factory, and facilities for two key battery components - cathodes and separators - located elsewhere in Ontario.
Image source: youtue/cpac
The Honda factory will be the third electric vehicle battery factory in Ontario, following Volkswagen's Stellantis factory in St. Thomas and LG's Stellantis factory in Windsor.
Honda's investment scope and government support both mark a turning point in Canada's strategy to become a major player in the global competition to establish an electric vehicle supply chain.
Previously, the federal and provincial governments had promised to provide 33 billion yuan in production subsidies for the construction of three electric vehicle battery factories, including 15 billion yuan for Stellantis (in partnership with LG Energy Solutions), 13.2 billion yuan for Volkswagen's production in Ontario, and 4.6 billion yuan for Northvolt AB in Quebec. The subsidy has a time limit, and these maximum limits can only be reached if the factory starts producing batteries at full capacity as soon as possible.
The government also announced approximately 5 billion yuan to support the capital costs of these three projects. In addition, the government has also promised to provide billions of yuan in funding to car manufacturers to reconfigure car assembly lines and attract investment in upstream battery materials in the supply chain.
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https://www.theglobeandmail.com/business/article-honda-electric-vehicles-canada/