Honda indefinitely suspends $15B electric vehicle plant in Ontario

15-May-2026

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Honda has indefinitely suspended its plans for a $15-billion electric vehicle complex in Ontario due to changing business conditions.

The Japanese automaker said last May it was pausing development at the plant, with plans to review where the EV market was at in two years.

The decision to more definitively suspend the plant was first reported last week by Japanese media, but at the time Honda did not confirm the news.

"Based on our revised strategic objectives, we have determined that an indefinite suspension of the value chain project is appropriate at this stage. We will continue reviewing our future procurement and business strategies, while carefully monitoring market conditions," Honda said in a statement on May 14.

The company says the pause won't impact current employment or production levels at its Alliston manufacturing plant.

The planned EV complex could have created about 1,000 manufacturing jobs and made 240,000 vehicles a year once it was fully operational by 2028.