Honda has indefinitely suspended its plans for a $15 billion electric vehicle complex in Ontario due to changing business conditions.

The Japanese automaker said last May it was pausing development at the plant, with plans to review where the EV market was at in two years.

The decision was first reported last week by Japanese media, but at the time Honda did not confirm the news.

The company says the pause won’t impact current employment or production levels at its Alliston, Ont., manufacturing plant.

The planned EV complex could have created about 1,000 manufacturing jobs.

The announcement comes as Honda posted its first-ever full-year loss at $2.7 billion US, which it attributed heavily to EVs and governments, including the Trump administration, pulling back on incentive programs.

“EV demand has declined considerably, due to the rollback of environmental regulations in the U.S. and other factors,” Honda said in a statement.

The project was first announced in April 2024 at an event that included then-prime minister Justin Trudeau and Ontario Premier Doug Ford, both of whom pledged money toward the project. Ottawa and Ontario said they would provide $2.5 billion each for the project.

In the announcement, Honda said it hasn’t received any of that promised government money.