Asahi Kasei is Building a Lithium-ion Battery Separator Plant in Canada

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from Business Wire

Published on April 24, 2024 • 4 minutes reading time

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TOKYO & NEW YORK & DÜSSELDORF, Germany – Asahi Kasei today announced that it will build an integrated base film manufacturing and coating facility for the Hipore™ wet process lithium-ion battery separator (LIB) in Ontario, Canada¹. Regarding this plant, Asahi Kasei has a basic agreement with Honda Motor Co., Ltd. (Honda) closed and the two parties are currently exploring joint investments. With regard to the Canadian plant, it was also agreed that Asahi Kasei Battery Separator Corp.², scheduled to be established in October 2024, will be financed by the Development Bank of Japan Inc. (DBJ) through the issuance of preferred shares. In addition, this investment is expected to receive financial support from the Canadian federal government and the Ontario provincial government.

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Overview of Canadian Investment (Plant Construction)

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1) Location	Ontario, Canada
2) Plant overview	Integrated system for base film production and coating of the Hipore™ lithium-ion battery separator
3) Total investment amount	About 180 billion yen
4) Production capacity	About 700 million m² per year (as coated film)
5) Commissioning	Commercial launch planned for 2027

The funds required for this investment will be available to ES Materials Canada Corp., the Canadian separators company, and E-Materials Canada Corp., the local manufacturing company responsible for equipment engineering and manufacturing, through ES Materials Holdings Corp., North provided American separator company.

1. The separator shop in Asahi Kasei

Asahi Kasei is positioning its energy storage business as one of the “10 Wheels of Growth” (GG10) to drive future growth in its medium-term management plan for fiscal year 2024, which focuses on the theme “Be a Trailblazer.” The core of its energy storage business is the Hipore™ wet process LIB separator, which is a leader in technological innovation due to its over 40-year business history and is currently expanding its sales into automotive applications in addition to consumer electronics applications.

In order to meet North American demand for plug-in electric vehicle battery separators and join the North American LIB supply chains emerging in part due to government clean energy policies, the decision was made to establish a LIB separator manufacturing facility in Ontario. Canada.

2. Basic agreement with Honda

Asahi Kasei and Honda have reached a fundamental agreement based on the shared understanding of the importance of establishing a supply chain for the stable supply of the North American plug-in electric vehicle market, which is expected to grow over the medium to mid-term long term. Studies are underway to establish a joint venture to produce Hipore™ separators for batteries installed in electric vehicles from Honda and other vehicle manufacturers for the North American market.

“To achieve carbon neutrality, Honda aims to achieve 100% of global sales from electric and fuel cell vehicles by 2040,” said Manabu Ozawa, Managing Executive Officer of Honda. “The separator is an extremely important component that contributes to the higher performance and durability of batteries, which are essential for electric vehicles. We are very pleased to partner with Asahi Kasei, which has outstanding technological capabilities and extensive expertise in separators. This will enable us to realize highly competitive electric vehicles that can meet future growing demand in the North American market.”

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“The Hipore™ business will play an important role in Asahi Kasei’s growth in the medium term,” added Hiroyoshi Matsuyama, Senior Executive Officer of Asahi Kasei. “It will be critical for us to capitalize on market growth in North America. This partnership with Honda, which has a long history of success in the North American automotive market and is aggressively electrifying its vehicle lineup, allows us to make a significant contribution to improving LIB performance given the expected growth of the electric vehicle market and the energy transition in North America.”

3. Funding from DBJ

To build a production facility for Hipore™ separators in Canada, it was decided that Asahi Kasei Battery Separator Corp. obtains ¥28 billion in financing through the issuance of preferred shares to DBJ, as a project that increases the competitiveness of LIB separator business and strengthens LIB component supply capability.

4. Financial and other government support

Asahi Kasei strives to achieve an appropriate production scale in line with market expansion while reducing investment risk, and in addition to support, expects financial support from the Canadian federal government and the Ontario provincial government through its investment attraction agency Invest Ontario under the Memorandum of Understanding between Canada and Japan from September 2023 on battery supply chains.

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¹ A lithium-ion battery separator is a microporous membrane that forms a barrier between the positive and negative electrodes of a lithium-ion battery, allowing the passage of lithium ions while preventing short circuits.

² Please note the press release “Transfer of the lithium-ion battery separator business through corporate separation (simplified absorption separation)” dated February 7, 2024.

About Asahi Kasei

The Asahi Kasei Group contributes to the lives and housing of people around the world. Since its founding in 1922 with ammonia and cellulose fiber businesses, Asahi Kasei has continued to grow by proactively transforming its business portfolio to meet the changing needs of every age. With more than 48,000 employees worldwide, the company contributes to a sustainable society by providing solutions to the world’s challenges through its three business areas: Materials, Household and Healthcare. The materials sector includes the areas of Environmental Solutions, Mobility & Industrial and Life Innovation and includes a wide range of products from battery separators and biodegradable textiles to engineering plastics and sound solutions. For more information, visit www.asahi-kasei.com.

Asahi Kasei is also committed to sustainability initiatives and helping to achieve a climate-neutral society by 2050. For more information, visit https://www.asahi-kasei.com/sustainability/.