Honda’s $11B EV Factory In Canada Is Dead: Report

The carmaker previously put the plant on hold for two years. Now, a Nikkei report says the factory is dead in the water.

Honda 0 Series Shadow

Photo by: InsideEVs

Iulian Dnistran

By: Iulian Dnistran

May 6, at 8:20am ET

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Honda is reportedly canceling a $11 billion electric vehicle and battery plant in Canada.
The factory was announced in 2024, and the first products were scheduled to roll off the assembly lines as early as 2027.
The move comes after Honda canceled the upcoming 0 Series EVs, which were developed from the ground up.

Honda will reportedly cancel the construction of its $11 billion electric vehicle and battery factory in Canada, according to Nikkei. The plant, announced in 2024, had a planned capacity of 240,000 vehicles and 36 gigawatt-hours of EV batteries per year, and was expected to put the Japanese automaker on an equal footing with brands like General Motors and Ford.

The move, which has not been confirmed by Honda yet, comes after the cancellation of several brand-new EVs based on a bespoke platform. The Honda 0 Series SUV and Saloon, as well as the Acura RSX, were canned earlier this year, with the company citing a slowing EV market in the United States and its inability to keep up with China. The Acura ZDX crossover, which was co-developed with General Motors, was also discontinued after just one model year.

The Honda 0 Series SUV was based on a brand-new architecture that emphasized efficiency. Not a single car rolled off the assembly line.

Photo by: InsideEVs

The Canadian factory was originally slated to go online as early as 2027, but the automaker postponed the development by two years. Now, though, Honda decided to indefinitely suspend the project and is now in touch with the Canadian government, according to Nikkei.

Honda’s Canadian EV factory idea was born when the $7,500 federal tax credit was up and running. The company had bought the land for the facility, and was set to receive financial aid from Canada, but now America’s car landscape looks completely different than last year.

The Trump administration canceled the $7,500 incentive for new EV purchases. At the same time, the U.S. loosened average fuel economy requirements for automakers and revoked penalties for companies that fail to meet fuel efficiency standards. Import tariffs were also imposed.

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All of this has caused the American auto industry to rush for change, scrapping EV programs and investing in hybrids. The bill is enormous, with tens of billions of dollars wasted on developing state-of-the-art electric vehicles that never saw the light of day.

Honda has been hit particularly hard by the changes. The company, which currently sells the General Motors-developed Prologue EV in the U.S., is expected to report up to $15.6 billion in losses in the 2026 financial year due to the EV strategy shift.