Honda’s $10 billion EV project is the latest victim of the industry’s slowdown

Honda Canada will postpone a $15-billion Canadian (US$10.7 billion) electric vehicle investment project in Canada's most populous province, including a proposed EV battery plant and retooled vehicle assembly facility.

Honda Canada spokesman Ken Chiu said Tuesday due to the recent slowdown in the EV market, Honda has announced an approximate two-year postponement of the comprehensive value chain investment project in Ontario.

“The company will continue to evaluate the timing and project progression as market conditions change,” Chiu said in a statement.

The decision has no impact on current employment at the Honda manufacturing plant in Alliston, Ontario, he added.

Honda’s EV project in Canada includes a retooled assembly plant, an electric vehicle battery plant in close proximity, as well as two key battery parts facilities located elsewhere in Ontario.

The project was expected to see the two main plants create 1,000 jobs on top of retaining the existing 4,200 jobs at the assembly plant.

Under the original plan, the plant was set to produce up to 240,000 vehicles per year when fully operational in 2028.

Ottawa was set to give the Japanese automaker around $2.5 billion Canadian (US$1.8 billion) through tax credits, while Ontario committed to providing up to $2.5 billion Canadian (US$1.8 billion) in support directly and indirectly.

“The market cooling consequences of US tariff actions continue to be felt by everyone, Honda included,” Flavio Volpe, president of the Automotive Parts Manufacturers’ Association, posted on social media.

This story was originally featured on Fortune.com