Honda will invest $15 billion in four new EV-related plants in Ontario, the Japanese automaker and federal and provincial officials announced Thursday.

The developments will likely have widespread other commercial real estate implications in Ontario, other parts of Canada and, possibly the U.S.

The Ontario and federal governments will provide $5 billion of the $15-billion investment through financial support and tax credits, with the two governments each supplying $2.5 billion, Prime Minister Justin Trudeau and Ontario Premier Doug Ford announced. The province is slated to provide capital to develop the facilities, while the federal government will furnish tax credits.

Honda said it will build a new stand-alone EV manufacturing plant and a new stand-alone EV battery plant at Alliston, Ont. The EV facility will have a production capacity of 240,000 units per year. The battery plant’s annual capacity is expected to be 36 gigawatts.

Jean Marc Leclerc, Honda Canada’s president and CEO, said the investment recognizes the long-term attractiveness of the Canadian EV manufacturing ecosystem.

Honda has existing conventional-vehicle manufacturing operations in Alliston, which is near Windsor.

Honda will also partner on a cathode processing plant and a separator plant with South Korea’s POSCO Future M Co., and a separator plant with Japan’s Asahei Kasei Corporation in two other Ontario communities. Details on those projects are to be announced later.

Nikkei Asia had reported previously that Honda was contemplating a multi-billion-dollar EV manufacturing facility in Canada and could invest up to $18.5 billion.

Pictured: Prime Minister Justin Trudea walks with Honda executives prior to news conference in Alliston, Ont.

Photo: CNW Group/Honda Canada