Engineering Asahi Kasei to Develop Lithium-Ion Battery Separator Plant in Canada

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Asahi Kasei has plans to develop a lithium-ion battery separator plant in Canada. Asahi Kasei Battery Separator Corp., which is scheduled to be established in October 2024, will receive funding from the Development Bank of Japan for the project.

Düsseldorf/Germany – Asahi Kasei will construct an integrated plant in Ontario, Canada for the base film manufacturing and coating of Hipore wet-process lithium-ion battery (LIB) separator. In relation to this plant, Asahi Kasei has concluded a basic agreement with Honda Motor Co., (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., which is scheduled to be established in October 2024, will receive funding from the Development Bank of Japan (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 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.

1. The separator business in Asahi Kasei

Asahi Kasei positions its Energy Storage related business as one of the "10 Growth Gears" (GG10) expected to drive future growth in its medium-term management plan for fiscal 2024, which is focused on the theme "Be a Trailblazer." The core of its Energy Storage business is Hipore wet-process LIB separator. To meet North American demand for battery separator for plug-in electric vehicles and to join North American LIB supply chains being established, in part as an effect of governmental clean energy policies, the decision was made to construct an LIB separator manufacturing plant in Ontario, Canada.

2. Basic agreement with Honda

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.

“To achieve carbon neutrality, Honda is targeting 100 % of global sales from EVs and FCVs by 2040,” said Manabu Ozawa, Managing Executive Officer of Honda. “The separator is an extremely important component that contributes to higher performance and durability of batteries that are essential to EVs.

We are very excited to partner with Asahi Kasei, having outstanding technological capability and broad expertise regarding separators. This will allow us to realize highly competitive EVs that can meet future growing demand in the North American market.”

“The Hipore business will play an important role in Asahi Kasei’s growth over the medium term,” added Hiroyoshi Matsuyama, Senior Executive Officer of Asahi Kasei. “Capturing market growth in North America will be essential for us. This partnership with Honda, having a rich track record in the North American automotive market and aggressively electrifying its vehicle lineup, allows us to make a meaningful contribution to improvement of lithium-ion-battery performance in light of anticipated growth in the electric vehicle market and the energy transition in North America.”

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