Honda Motor Company announced that it plans - along with its yet unnamed partners - to invest $11 billion in Ontario, Canada, to create a comprehensive value chain for electric vehicles.

The Japanese automaker said on Thursday that the new electric vehicle center in North America will include new assembly and battery plants, in addition to other facilities to support the production of fully electric vehicles and fuel cells, according to media outlets.

Honda explained that vehicle production will begin in 2028, with an annual capacity of 240,000 units once the center is fully operational, and the investment is expected to help achieve the goal of providing electric and fuel cell vehicles by 2040.

The project is expected to create at least a thousand new jobs, in addition to the 4,200 employees currently working at the manufacturing facilities in Ontario. Honda stated that the investment aims to meet the future increase in demand for electric vehicles in North America.

Canadian Prime Minister Justin Trudeau said during a press conference broadcast live that Honda's investment of CAD 15 billion is the largest ever for the automotive industry in the country, and officials expect the company to receive up to CAD 2.5 billion in incentives from the Canadian government.