Honda Motor may indefinitely freeze Ontario EV plants

Honda Motor is considering an indefinite freeze on its planned EV and battery plants in Ontario, Canada, as slowing US electric vehicle demand prompts a review of its North American strategy.

The automaker is shifting more focus toward hybrid vehicles while reassessing future EV investment plans in the region.

Honda had planned to start the Ontario facilities in 2028, but said in May 2025 that it would delay the project by about two years.

The project was expected to cost about 15 billion Canadian dollars.

Honda had already bought land and made other preparations.

Nissan last week also dropped plans to build EVs at a US assembly plant, amid wider strategy shifts after the US government removed EV tax incentives.

🔗 Source: The Japan Times

🧠 Food for thought

Implications, context, and why it matters.

Honda’s Canadian freeze is part of a wider North American EV retreat

A possible freeze in Canada came after Honda said last week it would scrap three EVs once planned for Ohio production for North America. They were the Honda 0 SUV, the Honda 0 Saloon, and the Acura RSX, a premium sport utility vehicle from Honda’s luxury brand Acura 1.
At the same time, Honda booked a US$15.7 billion restructuring charge. The company now expects its first annual loss in about 70 years 1.
The change came after new US federal rules ended EV tax credits on September 30, including up to US$7,500 for new EVs, and added a US$250 yearly fee for electric vehicles 2.
Honda is not alone. Companies had canceled US$22 billion in previously announced EV or battery manufacturing projects in the United States in 2025 1.

Underused EV battery capacity is shifting to grid storage

Slower EV demand has left extra battery capacity. Some battery makers and automakers are sending it to the stationary energy storage market, which stores electricity for later use on the power grid 3.
Ford offers one example. It said it would turn existing US battery capacity in Glendale, Kentucky, toward battery energy storage systems after ending production of the F-150 Lightning electric truck 3.
Demand from other sectors is helping drive the move. A calculation based on UBS, the Swiss bank, data projects lithium demand for energy storage will rise 55% in 2026 3.
The shift is also changing logistics. Providers now need to move larger, more complex systems for utility projects run by power companies instead of high-frequency automotive parts 3.