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Honda Motor Co. has more definitively suspended plans for a C$15-billion electric-vehicle and battery complex at its Alliston, Ontario campus, multiple reports said May 6–7, 2026.
The project — first announced in 2024 and paused in May 2025 — was due to start operations in 2028 and had been pitched to produce about 240,000 EVs annually.
Honda Canada has not formally confirmed the move, saying it has “nothing to report at this time.” Industry sources and media cited weakening U.S. demand for battery EVs, the removal of U.S. federal EV tax credits and new U.S. vehicle and metal tariffs as key commercial pressures prompting a pivot toward hybrids in North America.
Federal and Ontario officials said no public funds have been paid and they remain in contact with Honda; the package originally included roughly C$5 billion in potential federal and provincial supports subject to milestones.
The decision follows a string of scaled-back EV and battery projects in Canada and raises immediate questions about local jobs, supplier contracts and the future of the country’s EV industrial strategy.








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