Japanese auto giant Honda has pumped the brakes on its $15 billion plan to build an electric vehicle supply chain in Canada, blaming "changing market conditions” for a decision that

Honda’s CA$15 billion commitment was touted by former Prime Minister Justin Trudeau as the “largest auto investment in Canada’s history.” It was to include a battery plant with an annual capacity of 36 GWh while an EV assembly plant would have been able to build as many as 240,000 vehicles per year from 2028.

Japanese multinational Asahi Kasei Corporation and Honda Canada formed a joint venture to make battery separators in Niagara. Despite Honda pausing $15 billion in EV investments, Asahi Kasei says the project should continue with 'minimal' impact.

Honda Canada is postponing a $15-billion electric vehicle investment project in Ontario, including a proposed EV battery plant and retooled vehicle assembly facility.

Slowing demand for EVs and US tariffs impact on Canada’s auto sector force the Japanese automaker to postpone plans for an EV supply chain in Ontario, dealing a severe blow to Canadian EV ambitions.

In response to tariff talk from the Trump administration, Honda appears to be getting ready to move production of CR-V crossovers intended for American customers away from its plant in Canada and towards a facility in the United States. But hold the phone: it seems the situation may not be completely dire.