Asahi Kasei announced today that it will construct an integrated
plant in Ontario, Canada for the base film manufacturing and
coating of Hipore™ wet-process lithium-ion battery (LIB)
separator1. In relation to this plant, Asahi Kasei has concluded a
basic agreement with Honda Motor Co., Ltd. (Honda) and the two
parties are currently studying joint investment. Also with regard
to the Canadian plant, it has been agreed that Asahi Kasei Battery
Separator Corp.2, which is scheduled to be established in October
2024, will receive funding from the Development Bank of Japan Inc.
(DBJ) through the issuance of preferred shares. Furthermore,
receipt of financial support from the federal government of Canada
and the provincial government of Ontario regarding this investment
is expected.
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Conceptual image of initial facility
(Photo: Business Wire)
Outline of the Canadian investment (plant construction)
1) Location
Ontario, Canada
2) Plant overview
Integrated plant for the base film
manufacturing and coating of Hipore™ lithium-ion battery
separator
3) Total investment amount
Approximately ¥180 billion
4) Production capacity
Approximately 700 million m2 per year (as
coated film)
5) Start of operation
Commercial start-up scheduled in 2027
The necessary funds for this investment will be provided to ES
Materials Canada Corp., the Canadian separator business company,
and E-Materials Canada Corp., the local manufacturing company
responsible for plant construction and manufacturing, through ES
Materials Holdings Corp., the North American separator business
company.
1. The separator business in Asahi Kasei
Asahi Kasei positions its Energy Storage related business as one
of the "10 Growth Gears" (GG10) expected to drive future growth in
its medium-term management plan for fiscal 2024, which is focused
on the theme "Be a Trailblazer." The core of its Energy Storage
business is Hipore™ wet-process LIB separator, which has been
leading technological innovation based on over 40 years of business
history, and is currently expanding its sales in automotive
applications in addition to consumer electronics applications.
To meet North American demand for battery separator for plug-in
electric vehicles and to join North American LIB supply chains
being established, in part as an effect of governmental clean
energy policies, the decision was made to construct an LIB
separator manufacturing plant in Ontario, Canada.
2. Basic agreement with Honda
Asahi Kasei and Honda have reached a basic agreement based on
the shared understanding that it is essential to establish a supply
chain for the stable supply of high-performance batteries for the
North American plug-in electric vehicle market, which is expected
to grow over the medium to long term. Studies are advancing for the
establishment of a joint venture to manufacture Hipore™ separator
for batteries installed in EVs made by Honda and other vehicle
manufacturers for the North American market.
“To achieve carbon neutrality, Honda is targeting 100% of global
sales from EVs and FCVs by 2040,” said Manabu Ozawa, Managing
Executive Officer of Honda. “The separator is an extremely
important component that contributes to higher performance and
durability of batteries that are essential to EVs. We are very
excited to partner with Asahi Kasei, having outstanding
technological capability and broad expertise regarding separators.
This will allow us to realize highly competitive EVs that can meet
future growing demand in the North American market.”
“The Hipore™ business will play an important role in Asahi
Kasei’s growth over the medium term,” added Hiroyoshi Matsuyama,
Senior Executive Officer of Asahi Kasei. “Capturing market growth
in North America will be essential for us. This partnership with
Honda, having a rich track record in the North American automotive
market and aggressively electrifying its vehicle lineup, allows us
to make a meaningful contribution to improvement of LIB performance
in light of anticipated growth in the electric vehicle market and
the energy transition in North America.”
3. Financing from DBJ
In constructing a manufacturing plant for Hipore™ separator in
Canada, it has been decided that Asahi Kasei Battery Separator
Corp. will receive funding of ¥28 billion by issuing preferred
shares to DBJ as a project that enhances the competitiveness of LIB
separator business and strengthens LIB components supply
capability.
4. Financial and Other Government Support
Asahi Kasei strives to achieve adequate production scale in
accordance with market expansion while reducing investment risk,
and expects to receive financial support from the federal
government of Canada and the provincial government of Ontario,
through its investment attraction agency, Invest Ontario, in
addition to support under the September 2023 memorandum of
understanding between Canada and Japan concerning battery supply
chains.
Please refer to the presentation material for specifics.
1 A lithium-ion battery separator is a microporous membrane that
provides a barrier between the positive and negative electrodes of
a lithium-ion battery, allowing lithium ions to pass through while
preventing short circuits.
2 Please refer to the press release “Transfer of lithium-ion
battery separator business by corporate separation (simplified
absorption-type separation)” dated February 7, 2024.
About Asahi Kasei
The Asahi Kasei Group contributes to life and living for people
around the world. Since its foundation in 1922 with ammonia and
cellulose fiber businesses, Asahi Kasei has consistently grown
through the proactive transformation of its business portfolio to
meet the evolving 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 sectors of Material, Homes, and Health Care. Its
Material sector, comprised of Environmental Solutions, Mobility
& Industrial, and Life Innovation, includes a wide array 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 dedicated to sustainability initiatives and
is contributing to reaching a carbon neutral society by 2050. To
learn more, visit https://www.asahi-kasei.com/sustainability/.
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version on businesswire.com: https://www.businesswire.com/news/home/20240424712056/en/
North America Contact: Asahi Kasei America Inc. Christian OKeefe
christian.okeefe@ak-america.com Europe Contact: Asahi Kasei Europe
GmbH Sebastian Schmidt sebastian.schmidt@asahi-kasei.eu