02:02 PM EDT, 04/22/2024 (MT Newswires) -- Honda Motor Company ( HMC ) is near a deal with the Canadian government to build electric vehicles and batteries in Ontario, Bloomberg News reported, citing people familiar with the matter.

The news service said Canada will subsidize a portion of the capital costs for "new facilities to process cathode active materials, build batteries, and assemble battery-powered vehicles - making southern Ontario a key hub of company's EV manufacturing plans in North America".

The Canadian and Ontario governments have already offered subsidies for battery plants now under construction in southern Ontario by Volkswagen and Stellantis-LGES totaling almost C$30 billion as it looks to shore up its domestic EV industry by matching US subsidies provided by the Inflation Reduction Act.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)