Honda, the Japanese automotive manufacturer, is expected to announce a multibillion-dollar deal to build electric vehicles and their parts in Ontario, according to government sources confirmed to CBC News.

High-level government sources, who spoke to CBC News on the condition of anonymity because they are not authorized to speak publicly, indicated that the anticipated deal would include new facilities for processing cathode active materials, building batteries, and assembling battery-powered vehicles.

The sources confirmed that the announcement is expected to take place in Alliston, Ontario, on Thursday, when questions about the level of government support become public.

The budget passed last week by Parliament has not yet been approved, but it reviewed the tax credit for investment in the electric vehicle supply chain, which is likely to serve as a local incentive for Honda. The government is proposing a 10 percent tax exemption on the cost of buildings used in three key areas of the electric vehicle supply chain: assembly, battery production, and the production of cathode active materials.

Flavio Volpe, president of the Automotive Parts Manufacturers' Association, responded to the news by stating: "Honda is not making speculative long-term bets."

He added, "With nearly 40 years in the automotive industry in Canada without a failure or downturn, Honda's supply contract has become financially viable."