Honda will decide this year whether to develop a multi-billion-dollar electric-vehicle manufacturing facility in Canada, according to Japanese media outlet Nikkei Asia.

Without citing sources, Nikkei reported that the Japanese automaker could invest up to $18.5 billion in a Canadian EV plant that may also produce batteries. Such an investment would have widespread commercial real estate ramifications throughout the EV supply chain and could receive billions in federal and provincial support, based on other EV and battery projects underway in Ontario and Quebec.

If built, the Canadian facility would be Honda’s second in North America. The company is slated to start producing EVs and batteries in Ohio in 2026.

Potential Canadian sites include one next to an existing automobile factory in Ontario, Nikkei reported. News of the possible investment comes after the federal government finalized its new EV availability standard in December.

The standard requires all new cars, SUVs, crossovers and light-duty trucks to be zero-emission vehicles by 2035.

But Honda Canada spokesman John Bordignon has declined to confirm the potential investment.

“In order to achieve our 2040 electrification target of 100% electrified vehicles, we are considering various options to increase local production capacity,” he told the Canadian Presss. “However, we have nothing further to share at this time.”

Industry Minister François-Philippe Champagne said in a statement that the reported potential investment is a “testament to Canada’s growing reputation as a green supplier of choice and global EV leader.” But a spokesperson for Champagne did not confirm whether any talks between Honda and Ottawa were underway.

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