Sign up for our popular daily email to catch all the latest EV news!
In a significant step for the North American electric vehicle (EV) market, Asahi Kasei Corporation and Honda Motor Co., Ltd. have signed a shareholders’ agreement to establish a joint venture for lithium-ion battery separator production in Canada. This agreement follows ongoing discussions between the two companies, building on a basic collaboration framework announced in April 2024.
Key Highlights of the Agreement:
- Conversion of E-Materials Canada: E-Materials Canada Corporation, currently a wholly owned subsidiary of Asahi Kasei, will become a joint venture with Honda taking a 25% stake.
- Investment: Honda’s investment totals approximately C$417 million (US$300 million), including new share subscription and further funding.
- Name and Location: The joint venture, tentatively named Asahi Kasei Honda Battery Separator Corporation, will be based in Port Colborne, Ontario.
- Focus on High-Quality Separators: Combining expertise in high-value material and electrification technologies, the companies aim to produce high-performance separators for EV batteries.
Under the agreement, Honda will acquire its share through a third-party allotment of new shares in E-Materials, now expected to be renamed as the joint venture progresses. This joint venture will leverage Asahi Kasei’s material technology and Honda’s electrification expertise to produce battery separators aimed at improving EV performance and durability in line with Honda’s commitment to carbon neutrality by 2050.
The two companies anticipate operational launch of the new entity by early 2025, pending necessary regulatory approvals. Production at the integrated facility is set to commence by 2027, with expected capacity reaching 700 million square meters annually of Hipore™ coated film separators.
In a statement, Ryu Taniguchi, President of Asahi Kasei Battery Separator Corp., highlighted the venture’s potential to support sustainable EV development and strengthen North American supply chains:
“Our partnership will not only establish stable supply of separators in North America, together we will enhance battery performance and durability to advance the energy transition through electric vehicles, making an important contribution to sustainability.”
Investment Details (Tentative)
- Plant Investment: Approximately 180 billion yen (USD exchange rate of 145 yen)
- Production Facility: An integrated site for base film manufacturing and Hipore™ separator coating
- Capital Structure: 75% owned by Asahi Kasei Battery Separator Canada, 25% by Honda Canada Inc.
The move aligns with Honda‘s broader strategy to invest nearly CAD$15 billion (USD$11 billion) to create an EV value chain in Canada.
Sign up for our popular daily email to catch all the latest EV news!
