Japanese automotive company Honda is considering building a $13.8bn EV complex in Canada, reports Nikkei Asia.

The project, which may include a battery factory and an assembly plant, would be one of Honda’s largest ever investments. A number of sites are thought to be under consideration, including a spot next to an existing automobile factory in Ontario.

Nikkei said Honda expected to come to a decision by the end of 2024 and the plant could begin production in 2028.

Honda declined to comment on the report, however the Reuters news agency notes that Japan’s second-biggest car maker has been slow to make the switch to EVs, and that a major initiative of this type is on the cards.

Pure EVs accounted for less than 0.5% of the 2.8 million cars Honda sold over the first nine months of 2023, according to company data.

The Tokyo-based company said in October 2022 that it would build a battery plant in Fayette County, Ohio with LG Energy Solution. It broke ground in February 2023.

In October, Honda and General Motors called off plans to collaborate on a $5bn plan to produce EVs, again with the participation of LG Energy Solution.

A spokesperson for François-Philippe Champagne, Canada’s industry minister, told Reuters that the report of Honda plans was a tribute to the quality of the country’s workforce and the strength of its industry.

He said: “It is a testament to Canada’s growing reputation as a green supplier of choice and global EV leader.”