AsianFin—Canada is on the verge of an agreement with Japanese automaker Honda that would see the firm build electric vehicles and their components in the Canadian province of Ontario, according to people familiar with the matter.

The deal, expected to be announced in a week, involves a multibillion-dollar commitment by Honda for new facilities to process cathode active materials, build batteries, and assemble battery-powered vehicles, which will make the southern Ontario a key hub of the Japanese company’s EV manufacturing empire.