Asahi Kasei, a major Japanese chemical company, is set to construct a plant in Canada dedicated to manufacturing components crucial for electric vehicle (EV) batteries, with a particular focus on lithium-ion battery separators. This move involves an investment of approximately 200 billion yen ($1.3 billion), with production commencement targeted for 2027.
The Canadian facility is strategically positioned to supply key materials primarily to Honda Motor’s upcoming EV factory and other Japanese manufacturers like Panasonic Holdings, expanding their operations in North America. In light of the U.S. Inflation Reduction Act, which mandates over half of EV battery components be locally sourced for tax benefits, Asahi Kasei’s plant is expected to see heightened demand for its separators.
Furthermore, Honda is exploring an investment in a new entity to manage the operations of Asahi Kasei’s separator plant, ensuring a reliable supply chain for critical EV components. This collaboration highlights a significant step in securing component supplies amidst increasing North American production demands.
Asahi Kasei is also enhancing its global production capabilities. It plans to invest around 40 billion yen to expand its coating process capacity, crucial for finishing battery separators, across its existing facilities in Japan, Korea, and the U.S., operational by late 2026.
Despite facing stiff competition from Chinese companies and dropping to sixth place in the global separator market in 2022, Asahi Kasei’s expansion signifies a robust commitment to reclaiming a leadership position in the EV component sector.
