Asahi Kasei Announces Port Colborne, Ontario, Canada as Location of Future Lithium-ion Battery Separator Plant

Rhea-AI Summary

Asahi Kasei announced the construction of a new lithium-ion battery separator plant in Port Colborne, Ontario, Canada. This facility, named Asahi Kasei Battery Separator Canada, will start commercial production in 2027, creating highly skilled, well-paying jobs in manufacturing and construction. The plant will produce Hipore™ wet-process separators for electric vehicle batteries and energy storage. The initial investment is approximately 180 billion JPY (CAD$ 1.56 billion) for 700 million square meters of annual separator capacity. The project is supported by the Ontario provincial government and will benefit from Canada's Clean Technology Manufacturing Investment Tax Credit.

Positive

• New LIB separator plant in Port Colborne will create highly skilled, well-paying jobs in manufacturing and construction.
• Start of commercial production aimed for 2027, indicating a clear timeline.
• Investment of approximately 180 billion JPY (CAD$ 1.56 billion) for significant production capacity.
• Production of Hipore™ wet-process separators, critical for EV and energy storage applications, addresses increasing market demand.
• Provincial support from Ontario government and benefits from federal Clean Technology Manufacturing Investment Tax Credit.

Negative

• Commercial production not expected until 2027, creating a long wait for potential revenue generation.
• High initial investment of 180 billion JPY (CAD$ 1.56 billion) could strain financials if market conditions change.

TOKYO & NEW YORK & DÜSSELDORF, Germany--(BUSINESS WIRE)-- Asahi Kasei announced today that it will construct its previously announced integrated lithium-ion battery (LIB) separator plant in Port Colborne, which is in the Niagara region of Ontario, Canada. The new manufacturing facility will operate as Asahi Kasei Battery Separator Canada and is expected to create highly skilled, good paying jobs in manufacturing and construction. The start of commercial production is currently slated for 2027.

Conceptual rendering of Asahi Kasei’s Port Colborne facility (Graphic: Business Wire)

Koshiro Kudo, President & Representative Director of Asahi Kasei Corporation, who attended for the location announcement event, stated, “As demand for electric vehicles – and the lithium-ion batteries that power them – continues to rise, we are eager to bring the first Hipore™ wet-process lithium-ion separator manufacturing facility to Canada. Backed by the abundant renewable resources, skilled talent and strong local community support here in Port Colborne, we will be able to better serve our partners in the region as well as the broader North American automotive market from this facility.”

The Hipore™ wet-process separators to be produced at the Port Colborne facility are among the most highly engineered and critical components of LIBs used in EVs and other energy storage applications.

On April 25, 2024, Asahi Kasei announced an initial investment of approximately 180 billion JPY (CAD$ 1.56 billion) to install approximately 700 million square meters of annual Hipore™ separator capacity at this new Canadian facility.

Asahi Kasei will receive support for the project from the provincial government of Ontario, through its investment attraction agency, Invest Ontario, and will benefit from the federal government’s new Clean Technology Manufacturing Investment Tax Credit (ITC).

About Asahi Kasei Corporation

The Asahi Kasei Group contributes to life and living for people around the world as a diversified group of companies that operates in the Material, Homes and Health Care business sectors. Founded in Japan in 1922, Asahi Kasei has over 100 years of manufacturing experience and is a pioneer in battery-related technology. The core of its Energy Storage business is the lithium-ion battery separator – a microporous membrane that provides a barrier between the positive and negative electrodes of the battery, preventing short circuits while allowing lithium ions to pass from one side of the battery to the other.

To learn more about Asahi Kasei, visit: www.asahi-kasei.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20240515368800/en/

North America Contact:

Asahi Kasei America Inc.

Christian OKeefe

christian.okeefe@ak-america.com

Europe Contact:

Asahi Kasei Europe GmbH

Sebastian Schmidt

sebastian.schmidt@asahi-kasei.eu

Source: Asahi Kasei

FAQ

Where is Asahi Kasei building its new lithium-ion battery separator plant?

Asahi Kasei is building its new lithium-ion battery separator plant in Port Colborne, Ontario, Canada.

What will the new Asahi Kasei plant in Port Colborne produce?

The new Asahi Kasei plant in Port Colborne will produce Hipore™ wet-process lithium-ion battery separators.

When will the Asahi Kasei Battery Separator Canada plant start commercial production?

The Asahi Kasei Battery Separator Canada plant is expected to start commercial production in 2027.

How much is Asahi Kasei investing in the new Port Colborne plant?

Asahi Kasei is investing approximately 180 billion JPY (CAD$ 1.56 billion) in the new Port Colborne plant.

What support is Asahi Kasei receiving for its new plant in Canada?

Asahi Kasei will receive support from the Ontario provincial government and benefit from Canada's Clean Technology Manufacturing Investment Tax Credit for its new plant.