Asahi Kasei and Honda to establish lithium-ion battery separator joint venture in Canada

Asahi Kasei Corporation and Honda Motor Co., Ltd. have signed a shareholder agreement to transform Asahi Kasei's existing Canadian subsidiary into a joint venture.

The agreement is the result of continued discussions on the joint production of lithium-ion battery separators in Canada based on the basic agreement announced by the two companies on April 25, 2024.

The two companies plan to transform E-Materials Canada Corporation (E-Materials), a wholly-owned subsidiary of Asahi Kasei's Canadian subsidiary, into a joint venture between Asahi Kasei and Honda, and change its name to Asahi Kasei Honda Battery Separator Co., Ltd. (tentative name).

The transaction will be based on Honda's Canadian subsidiary Honda Canada acquiring a 25% stake by subscribing to new shares issued by E-Materials through a third-party allotment. Honda will invest approximately 417 million Canadian dollars (approximately US$300 million) in the joint venture, including the subscription of new shares and other investments.

The two companies will combine their respective advantages in high-value-added material technology, electrification technology, etc. to produce high-quality separators for lithium-ion batteries and accelerate the realization of high-performance electric vehicles.

The two companies plan to establish the joint venture and start operations in early 2025, after obtaining licenses and approvals from relevant authorities.

Ryu Taniguchi, President and Representative Director of Asahi Kasei Battery Separator Co., Ltd., said: "In early October, we established Asahi Kasei Battery Separator Co., Ltd. as a new company for Hipore's separator business to achieve more flexible management of this important component of lithium-ion batteries. I believe that we can continue to leverage the technology and experience acquired from Hipore as well as our global network and diverse talents to achieve battery innovation and prepare for the future of energy storage.

"As Honda strives to achieve its goal of carbon neutrality by 2050, it is building a comprehensive electric vehicle value chain in Canada, where Honda has been doing business for more than 50 years. Our collaboration will not only establish a stable supply of separators in North America, but will also jointly improve battery performance and durability, promote energy transformation through electric vehicles, and make an important contribution to sustainable development. "