Honda will spend 15 billion Canadian dollars ($11 billion) to build out its electric vehicle supply chain in Canada, with billions of dollars of financial aid from government, as the Japanese automaker seeks to tap long-term demand in the region.

The figure includes investment by joint venture partners, and the aim is to start producing EVs in 2028, Honda said. The company will manufacture 240,000 vehicles a year at a new facility in Alliston, Ontario — a town north of Toronto where it currently produces gasoline-powered Honda CR-V and Civic models. It will also build a standalone battery plant in the community with a capacity of 36 gigawatt hours.

The push to develop the battery supply chain will also see Honda begin talks with South Korea’s Posco Future M for a cathode materials facility, and it plans to partner with Japan’s Asahi Kasei on separator production.