Asahi Kasei to Construct a Lithium-ion Battery Separator Plant in Canada

Conceptual image of initial facility

Asahi Kasei announced recently that it will construct an integrated plant in Ontario, Canada for the base film manufacturing and coating of Hipore™ wet-process lithium-ion battery (LIB) separator1. In relation to this plant, Asahi Kasei has concluded a basic agreement with Honda Motor Co., Ltd. (Honda) and the two parties are currently studying joint investment. Also with regard to the Canadian plant, it has been agreed that Asahi Kasei Battery Separator Corp.2, which is scheduled to be established in October 2024, will receive funding from the Development Bank of Japan Inc. (DBJ) through the issuance of preferred shares. Furthermore, receipt of financial support from the federal government of Canada and the provincial government of Ontario regarding this investment is expected.

The total investment amounts to approx- ¥180 billion, with the production capacity of about 700 million m2 per year (as coated film). Commercial start-up is scheduled in 2027.

The necessary funds for this investment will be provided to ES Materials Canada Corp., the Canadian separator business company, and E-Materials Canada Corp., the local manufacturing company responsible for plant construction and manufacturing, through ES Materials Holdings Corp., the North American separator business company.

Asahi Kasei and Honda have reached a basic agreement based on the shared understanding that it is essential to establish a supply chain for the stable supply of high-performance batteries for the North American plug-in electric vehicle market, which is expected to grow over the medium to long term. Studies are advancing for the establishment of a joint venture to manufacture Hipore™ separator for batteries installed in EVs made by Honda and other vehicle manufacturers for the North American market.