Summary
– Asahi Kasei will construct a plant in Ontario, Canada for the base film manufacturing and coating of lithium-ion battery separators
– The company will invest approximately $1.14 billion in the facility with a production capacity of 700 million square meters per year
– A subsidiary called Asahi Kasei Battery Separator will be established and issue preferred shares to receive funding
– Financial support for the plant will come from ES Materials Canada, E-Materials Canada, and government entities in Canada and Ontario
– Asahi Kasei has a basic agreement with Honda to explore the possibility of establishing a joint venture for manufacturing battery separators for EVs in North America.
Article
Asahi Kasei, a Japanese chemical company, is set to construct an integrated plant in Ontario, Canada for the manufacturing and coating of its Hipore wet-process lithium-ion battery separator. This new facility will require an investment of approximately ¥180 billion ($1.14 billion) and is expected to have a production capacity of around 700 million square meters of coated film per year. Commercial operations are scheduled to begin in 2027. To finance this project, a new subsidiary called Asahi Kasei Battery Separator will be established in October 2024, issuing preferred shares to the Development Bank of Japan to receive funding of ¥28 billion.
ES Materials Canada, a Canadian separator business company, along with its local manufacturing company E-Materials Canada, will provide financing for the construction of the plant and the manufacturing process. Asahi Kasei anticipates receiving financial support from both the federal government of Canada and the provincial government of Ontario. Additionally, support is expected under a 2023 agreement between Canada and Japan regarding battery supply chains. This collaborative effort aims to contribute to the growth of the battery industry and the development of sustainable energy solutions.
In collaboration with Honda, Asahi Kasei has entered into a basic agreement to explore the possibility of establishing a joint venture for the production of Hipore separators. These separators will be used in EVs manufactured by Honda and other vehicle manufacturers for the North American market. Honda’s Managing Executive Officer, Manabu Ozawa, emphasized the importance of separators in enhancing the performance and durability of batteries, particularly for electric vehicles. This partnership highlights the commitment of both companies to advancing technology and innovation in the automotive industry.
The construction of the integrated plant in Ontario represents a strategic move by Asahi Kasei to expand its presence in the global battery market. By setting up a production facility in Canada, the company aims to strengthen its supply chain and enhance its competitiveness in the lithium-ion battery separator sector. The collaboration with Honda further solidifies Asahi Kasei’s position as a key player in the EV industry, contributing to the development of sustainable mobility solutions for the future.
The establishment of the new subsidiary, Asahi Kasei Battery Separator, underscores the company’s commitment to investing in advanced technologies and sustainable practices. Through strategic partnerships and collaborations with industry leaders like Honda, Asahi Kasei aims to drive innovation and accelerate the adoption of electric vehicles worldwide. The development of the integrated plant in Ontario is a significant milestone in the company’s growth strategy, enabling it to capture opportunities in the rapidly evolving battery market and meet the increasing demand for high-performance battery materials.
Overall, the construction of the integrated plant in Ontario, Canada represents a major investment by Asahi Kasei to expand its production capacity and meet the growing demand for lithium-ion battery separators. By leveraging its expertise in chemical manufacturing and coating, the company aims to enhance the performance and durability of batteries used in electric vehicles. Through strategic partnerships with companies like Honda and support from government authorities, Asahi Kasei is poised to play a key role in driving the transition towards sustainable mobility and advancing the development of innovative battery technologies.
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