Asahi Kasei Corporation and Honda Motor Co., Ltd. announced on November 1st that the two companies have signed an agreement to transform an existing wholly-owned subsidiary of Asahi Kasei in Canada into a joint venture between the two companies. This agreement builds upon the cooperation agreement announced on April 25, 2024, to strengthen their ongoing collaboration in the production of lithium-ion battery separators in Port Colborne, Ontario, Canada.
According to the joint announcement, the two companies plan to convert "E-Materials Canada Corporation," a wholly-owned subsidiary of Asahi Kasei's Canadian subsidiary, into a joint venture between Asahi Kasei and Honda, tentatively renamed "Asahi Kasei Honda Battery Separator Corporation." Honda Canada Inc., a subsidiary of Honda, will acquire a 25% stake by subscribing to new shares issued by E-Materials through a third-party allotment. Honda will invest approximately CAD 417 million (about USD 300 million) in the joint venture, including subscription to new shares and other investments. The two companies will leverage their respective strengths, such as high-value-added material technologies and electrification technologies, to produce high-quality separators for lithium-ion batteries, thereby accelerating the realization of high-performance electrified vehicles.
The total investment for the separator project is 180 billion yen (about CAD 1.24 billion), with Asahi Kasei holding a 75% stake in the joint venture and investing the corresponding proportion of funds.
The two companies plan to establish and commence operations of the joint venture in early 2025, subject to obtaining permits and approvals from relevant authorities. The separator plant is planned to have an annual production capacity of 700 million square meters of lithium-ion battery base and coated separators, with a scheduled start of production in 2027.
Ryu Taniguchi, President & Representative Director of Asahi Kasei Battery Separator Corp., stated, “At the beginning of October we launched Asahi Kasei Battery Separator as a new company for the Hipore™ separator business to achieve more nimble management for this essential component of lithium-ion batteries. I am confident that we can continue to leverage the technology and experience gained with Hipore™ as well as our global network and diverse personnel to realize innovations in batteries for the future of energy storage.”
Honda, striving towards its goal of carbon neutrality by 2050, has been conducting business in Canada for over 50 years and is establishing a comprehensive electric vehicle value chain in Canada, including plans to build an electric vehicle factory with an annual production capacity of 240,000 vehicles and a standalone power battery factory with an annual capacity of 36GWh in Alliston, Ontario, and plans to establish a joint venture with POSCO Future M Co., Ltd. for cathode material and cathode precursor (CAM/pCAM) factories.
Currently, several battery companies and automotive manufacturers, including LG Energy Solution, SK On, Samsung SDI, Panasonic Energy, AESC, ACC (under Stellantis), and Power Co. (under Volkswagen Group), are establishing battery factories in North America. Asahi Kasei aims to capture 30% of the North American lithium/-ion battery separator market in the future and become the leading separator supplier in North America and Japan.
