Asahi Kasei and Honda to Establish JV for lithium-ion Battery Separators in Canada

Asahi Kasei Corporation and Honda Motor Co., Ltd. announced on November 1, 2024, that they have signed a shareholders’ agreement to convert an existing Asahi Kasei subsidiary in Canada into a joint venture focused on lithium-ion battery separators. This decision follows extensive discussions about collaborating on battery separator production in Canada, in line with a basic agreement announced by the companies on April 25, 2024.

Under this agreement, the two companies will transform E-Materials Canada Corporation (E-Materials)—currently a wholly owned subsidiary of Asahi Kasei in Canada—into a joint venture. Honda Canada Inc., a subsidiary of Honda in Canada, will acquire a 25% stake in E-Materials by subscribing to newly issued shares through a third-party allotment. Honda’s total investment in this joint venture will amount to approximately C$417 million (around US$300 million), including the share subscription and additional investments.

The new entity, tentatively named Asahi Kasei Honda Battery Separator Corporation, will combine Asahi Kasei’s expertise in high-value material technology with Honda’s electrification technology to produce top-quality lithium-ion battery separators. These separators are crucial for high-performance electric vehicles, and the venture is expected to accelerate advancements in battery durability and performance. By joining forces, the companies aim to contribute significantly to the electric vehicle (EV) market and the broader transition to sustainable energy.

The joint venture is scheduled to be established and operational by early 2025, pending necessary regulatory approvals. Ryu Taniguchi, President and Representative Director of Asahi Kasei Battery Separator Corp., expressed confidence in this collaboration, citing the experience and technology behind the company’s Hipore™ separator, a key component of lithium-ion batteries. According to Taniguchi, “Asahi Kasei Battery Separator was recently launched to achieve nimble management for this essential component of lithium-ion batteries. Leveraging our Hipore™ technology, global network, and diverse expertise, we are excited to drive forward innovations in energy storage.”

For Honda, this joint venture is part of its commitment to achieving carbon neutrality by 2050. Honda has a long history of operations in Canada, where it is now building an EV value chain to support its sustainability goals. Honda’s investment in the joint venture not only strengthens the supply of battery separators in North America but also aims to enhance battery reliability and performance, making a meaningful impact on the electric vehicle market and the push for carbon-neutral mobility.

Together, Asahi Kasei and Honda’s efforts through this joint venture will support the growth of the EV sector in North America, enhancing sustainable energy storage solutions and contributing to the global energy transition.