Asahi Kasei to Build EV Battery Plant in Canada to Supply Key Parts to Honda Motor

Asahi Kasei Corporation, a chemical company based in Japan, announced it will build a new production plant in Canada where it will make parts for electric vehicle batteries. The company will then supply critical materials to Honda Motor’s EV factory, which will also be constructed in the country.

According to Nikkei Asia, Asahi Kasei will spend around $1.3 billion or 200 billion yen to construct its new battery component facility in the country. The Japanese firm reportedly aims to commence production at the plant in 2027.

Main Items to Be Produced at the Canadian Plant

The new facility will mostly make lithium-ion battery separators, an essential component in EV batteries. At any rate, it was noted that while the plant in Canada is being built, the company is already expanding its production capacity for the separators by establishing more facilities where the battery component is coated.

Asahi Kasei will invest about 40 billion yen more to double its production capacity by installing coating equipment at three other existing factories in South Korea, Japan, and the United States. These plants are expected to start operations between April and September 2026.

Partnership with Honda Motor and Other Japanese Manufacturers

Reuters reported that Asahi Kasei is mainly building the EV battery materials plant in Canada to supply its products to Honda Motor’s EV production factory in the region. However, aside from the said automaker, Asahi Kasei is also expected to supply the same battery materials to other Japanese companies, such as Panasonic Holdings, which is currently expanding its manufacturing base in the North American territory.

At one point, Asahi Kasei had the largest global share in the separator market. However, due to stiff competition with Chinese firms, its ranking slid to sixth place in 2022.

Photo by: Asahi Kasei Website