Asahi Kasei and Honda establish a joint venture

E-Mobility Asahi Kasei and Honda form joint venture

2024-11-26 From Linda Demmel 2 min Reading Time

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Asahi Kasei and Honda have agreed to convert a Canadian subsidiary of the supplier into a joint venture. Together, they aim to produce separators for lithium-ion batteries.

The supplier Asahi Kasei and Honda plan to jointly manufacture separators for lithium-ion batteries at a plant in Canada.(Bild: Asahi Kasei) — The supplier Asahi Kasei and Honda plan to jointly manufacture separators for lithium-ion batteries at a plant in Canada.
(Bild: Asahi Kasei)

The Japanese supplier Asahi Kasei and Honda have agreed to convert Asahi Kasei’s Canadian subsidiary, E-Materials Canada Corporation, into a joint venture. It is tentatively set to be named "Asahi Kasei Honda Battery Separator Corporation." The agreement is the result of ongoing discussions to collaborate on the production of lithium-ion battery separators in Canada. The establishment and launch of the joint venture are planned for early 2025.

Honda Canada will acquire a 25% stake by subscribing to new shares issued by E-Materials through a third-party allocation. Honda plans to invest a total of $300 million. The two companies aim to combine their strengths, such as expertise in materials research and electrification, to produce high-quality separators for lithium-ion batteries.

Separators for lithium-ion batteries.(Bild: Asahi Kasei) — Separators for lithium-ion batteries.
(Bild: Asahi Kasei)

Groundbreaking for New Plant

On November 14, the official groundbreaking ceremony took place for the separator factory in Port Colborne, Canada. The plant will produce wet separators and create approximately 300 full-time jobs in its initial phase. The supplier further announced that the annual production capacity will be around 700 million square meters of coated lithium-ion battery separators. Over the coming months, the project will move into visible construction phases. Subject to the approval of relevant authorities, the facility is expected to begin commercial production as a joint venture between Asahi Kasei and Honda in 2027.

The battery separators in a lithium-ion battery separate the anode from the cathode, preventing short circuits in case of malfunctions. At the same time, lithium ions can still move freely between the electrodes. Additionally, the separators enable a higher energy density and a longer lifespan for the batteries.

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