Japan’s Asahi Kasei to build $1.3b EV battery plant in Canada

Japanese chemical company Asahi Kasei plans to construct a new $1.3 billion plant in Canada to manufacture essential components for electric vehicle (EV) batteries, The Nikkei Asia reported on Wednesday.

The facility will primarily serve Honda Motor’s upcoming EV factory in Canada and other Japanese manufacturers expanding in North America.

The Canadian plant will focus on producing lithium-ion battery separators, a critical component separating the positive and negative electrodes within an EV battery.

Asahi Kasei aims to begin production in 2027 with an investment of around 200 billion yen, according to the report.

Honda is considering investing in the company operating Asahi Kasei’s Canadian plant to ensure a stable supply of separators.

This aligns with the trend of sourcing components locally in North America, following the Inflation Reduction Act passed in the US in 2022.

Asahi Kasei is demonstrating its dedication to the North American market with the opening of a new plant. Additionally, the company is increasing its separator production capacity worldwide.

Approximately 40 billion yen will be invested to more than double coating capacity at current plants in Japan, Korea, and the US. These expansions are set to be finished between April and September 2026.