Honda (NYSE:HMC) Canada said it will postponing a C$15 billion (US$10.7 billion) electric vehicle investment project, which includes a proposed EV battery plant and retooled vehicle assembly facility, in Ontario.
Ken Chiu, Honda spokesperson, said the project will be postponed by approximately two years due to the recent slowdown in the EV market.
“The company will continue to evaluate the timing and project progression as market conditions change,” Chiu said in a statement on Tuesday.
The original project, announced in April 2024, aimed to establish a comprehensive EV supply chain in Ontario with four new manufacturing plants: an EV assembly plant, a battery manufacturing plant, and two battery parts facilities.
The plan was to have the assembly plant fully operational by 2028, producing up to 240,000 vehicles annually, and creating around 1,000 new jobs in addition to retaining 4,200 existing jobs at the plant.
Despite the postponement, Honda has stated that there will be no immediate impact on current employment at the Alliston manufacturing plant.
Honda shares traded down 5.3% at about $29, with a quarterly profit miss also weighing on the stock on Tuesday.