Japanese automotive giant Honda is investing $15 billion into four new electric vehicle (EV) manufacturing plants in Ontario, Prime Minister Justin Trudeau, Ontario Premier Doug Ford, and several Honda executives announced on April 25.

The federal government is expected to invest $2.5 billion in the deal through the EV Supply Chain investment tax credit and the proposed Clean Technology Manufacturing investment tax credit. The government of Ontario will also invest $2.5 billion in the form of direct and indirect incentives.

Honda Global CEO Toshihiro Mibe said Honda would be building the EVs entirely in Canada from raw materials to finished vehicles, and will begin production in 2028. Once the assembly plant is fully operational, it will produce as many as 240,000 vehicles per year said a government statement.

Mr. Mibe confirmed Honda will be investing $15 billion in the project, which includes an electric vehicle battery plant, retooling of an existing plant in Alliston, Ontario, for assembly, as well as two key battery parts facilities located elsewhere in Ontario.