Asahi Kasei and Honda Motor have reached a shareholders’ agreement to transform an Asahi Kasei subsidiary in Canada into a joint venture (JV) focused on producing lithium-ion battery separators.
The decision to convert E-Materials Canada Corporation, a wholly owned subsidiary of Asahi Kasei, into a JV—tentatively named Asahi Kasei Honda Battery Separator Corporation—follows discussions stemming from their preliminary agreement in April.
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The separator is a microporous polyolefin sheet that prevents the anode and cathode from contacting one another and causing a short circuit, while enabling lithium ions to pass back and forth during battery charging and discharging.
Honda Canada Inc, a Honda subsidiary in Canada, will acquire a 25% stake by subscribing to new shares issued by E-Materials through a third-party allotment.
Honda’s investment will total approximately C$417m ($300m), including the share subscription and other investments.
The collaboration aims to combine Asahi Kasei’s high value-added material technologies with Honda’s electrification technologies.
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By GlobalDataThe establishment and commencement of the joint venture’s operations are planned for early 2025, pending necessary permits and approvals.
Asahi Kasei Battery Separator president & representative director Ryu Taniguchi said: “At the beginning of October we launched Asahi Kasei Battery Separator as a new company for the Hipor separator business to achieve more nimble management for this essential component of lithium-ion batteries.
“As Honda strives toward the goal of carbon neutrality by 2050, it is building a comprehensive electric vehicle value chain in Canada, where it has a history of conducting business for more than 50 years.
“Our partnership will not only establish stable supply of separators in North America, together we will enhance battery performance and durability to advance the energy transition through electric vehicles, making an important contribution to sustainability.”
In May this year, Canada welcomed Asahi Kasei’s investment of around C$1.6bn to establish an EV battery separator plant in Port Colborne, Ontario, following a prior announcement from federal and provincial government officials.
