DEROIT – Honda Motor and yet-to-be-named three way partnership companions plan to speculate $11 billion in Ontario, Canada, to create a “complete EV worth chain,” the Japanese automaker introduced Thursday.

The corporate mentioned the brand new North American EV epicenter will embrace new meeting and battery crops in addition to different amenities to assist manufacturing of all-electric and gas cell-powered automobiles.

Honda mentioned car manufacturing will start in 2028, with annual car capability of 240,000 items as soon as it is absolutely operational. The funding in Alliston, Ontario, is anticipated to significantly help in Honda’s purpose of solely providing all-electric and gas cell-powered automobiles by 2040.

The timing of the funding could seem odd to business onlookers and traders, as many automakers have introduced pullbacks of their all-electric car plans amid slower-than-expected adoption of EVs.

Honda mentioned the funding is “for a future improve in EV demand in North America,” with the battery plant able to producing 36 gigawatt hours, or GWh, per yr.

The challenge is anticipated to create as least 1,000 new jobs, including to the 4,200 staff the corporate at present has at its two present manufacturing amenities in Ontario.

Prime Minister of Canada Justin Trudeau mentioned throughout a livestreamed press convention Thursday that Honda’s funding, $15 billion Canadian, is the biggest ever for the nation’s automotive business. The corporate is anticipated to obtain upward of $2.5 billion Canadian in help in tax credit and different incentives from the Canadian authorities, officers mentioned.

The funding is a serious win for Canada and comes after Honda final yr confirmed a $4.4 billion funding for a brand new U.S. battery plant in Ohio.

“In North America, following the initiative to determine our EV manufacturing system functionality within the U.S., we are going to now start formal discussions towards the institution of a complete EV worth chain right here in Canada, with the assist of the governments of Canada and Ontario,” Honda CEO Toshihiro Mibe mentioned in a launch. “We’ll strengthen our EV provide system and functionality with an eye fixed towards a future improve in EV demand in North America.”

Honda mentioned it has “begun the method of evaluating the scope of its funding and finishing negotiations with its three way partnership companions.” Its companion within the U.S. facility is LG Power Resolution.

The corporate mentioned it expects to finalize the plans in the course of the subsequent six months.