Asahi Kasei Corporation (Asahi Kasei) and Honda Motor Co., Ltd. (Honda) have signed a shareholders’ agreement to transform E-Materials Canada Corporation, an existing Asahi Kasei subsidiary, into a joint venture company for lithium-ion battery separator production. This collaboration marks a significant step toward establishing a local supply chain for essential battery materials in North America, driving forward both companies’ electrification strategies.
Under the agreement, the new entity will be renamed Asahi Kasei Honda Battery Separator Corporation. Honda will acquire a 25% stake in E-Materials by subscribing to new shares issued through a third-party allotment, contributing an investment totaling approximately C$417 million (US$300 million). This joint venture will leverage Asahi Kasei’s expertise in high-performance battery materials, specifically their Hipore™ separator technology, and Honda’s advanced electrification technologies to produce battery separators for electric vehicles (EVs).
“With the establishment of Asahi Kasei Battery Separator, we are poised to drive battery innovation further,” said Ryu Taniguchi, President & Representative Director of Asahi Kasei Battery Separator Corp. “Our partnership with Honda strengthens our ability to develop and supply high-quality separators that meet the needs of the growing EV market while promoting a sustainable energy future.”
Details of the Joint Venture:
- Company Name: Asahi Kasei Honda Battery Separator Corporation (tentative)
- Location: Port Colborne, Ontario, Canada
- Capital Investment: Approximately C$240 million
- Investment Ratio: 75% Asahi Kasei Battery Separator Canada Corporation, 25% Honda Canada Inc.
The integrated plant, with a total investment of 180 billion yen (approx. US$1.24 billion), is set to produce Hipore™ lithium-ion battery separators with an annual production capacity of approximately 700 million m². The commercial start-up is scheduled for 2027, following regulatory approvals. This facility will play a crucial role in Honda’s strategy to create a robust EV value chain in Canada, supporting its 2050 carbon neutrality goal.
