10:52 AM EDT, 04/22/2024 (MT Newswires) -- (Updates with additional details starting from second paragraph.)

Honda Motor ( HMC ) and Canada are approaching an agreement for the Japanese auto company to build electric vehicles and components in Ontario, Bloomberg reported, citing people familiar with the matter.

The deal includes a multibillion-dollar commitment from Honda ( HMC ) for new facilities and a commitment from the Canadian government to subsidize some of the capital costs, according to the report.

The new facilities will be used for processing cathode active materials, building batteries and assembling vehicles, the report added.

Honda ( HMC ) did not immediately respond to MT Newswires' request for comment.

(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.)