Honda Cancels EV Plant in Canada – Despite Prior Deal for Billions in Subsidies

[Ptarmigan]

Honda Cancels EV Plant in Canada – Despite Prior Deal for Billions in Subsidies
https://theconservativetreehouse.com/blog/2026/05/05/honda-cancels-ev-plant-in-canada-despite-prior-deal-for-billions-in-subsidies/

Previously, Toyota Inc informed the Canadian trade delegation that if the USMCA (CUSMA) was dissolved, the most important auto manufacturing operation they have in the country would end.  Toyota was being respectful and brutally honest with the Canadians.

Last year, at almost the same time as Toyota made their position clear, Honda put a pause on the plan to build EVs in Ontario [2025 Notice] pending additional review.  Today, according to Nikkei, Honda has now completed that review and cancelled the plan.  Honda will not build EVs in Canada.

Asahi Kasei, the Japanese material supplier that makes battery separators, a core component used in lithium-ion batteries, will likely make a similar announcement soon.  The decision is in response to declining EV sales in combination with current U.S-Canada trade friction.  Without guaranteed access to the U.S. market, it makes no sense to invest in Canada.

EVs were a failure. Little demand for them.