Asahi Kasei and Honda Form Joint Venture for lithium-ion battery separators

Asahi Kasei and Honda are forming a joint venture in Canada to produce lithium-ion battery separators, with Honda investing C$417 million for a 25% stake. Operations are set to begin in early 2025

Tokyo, Japan- Asahi Kasei Corporation (Asahi Kasei) and Honda Motor Co., Ltd. (Honda) announced that the two companies have signed a shareholders’ agreement to convert an existing Asahi Kasei subsidiary in Canada into a joint venture company. This agreement was reached as a result of continued discussions on collaboration for the production of lithium-ion battery separators in Canada based on the basic agreement the two companies announced on April 25, 2024.

Asahi Kasei and Honda have announced plans to transform E-Materials Canada Corporation, a wholly owned subsidiary of Asahi Kasei, into a joint venture. The new company, tentatively named Asahi Kasei Honda Battery Separator Corporation, will see Honda Canada Inc. acquire a 25% stake through the subscription of newly issued shares in E-Materials. Honda’s total investment in the venture will be approximately C$417 million (about US$300 million), including both the share subscription and additional funding. The partnership aims to leverage their combined strengths in advanced material technologies and electrification to produce high-quality lithium-ion battery separators, supporting the development of high-performance electric vehicles. The joint venture is set to begin operations in early 2025, pending necessary approvals.

Mr. Ryu Taniguchi, President & Representative Director, Asahi Kasei Battery Separator Corp, said, "In October, we launched Asahi Kasei Battery Separator to streamline management of the Hipore separator business, a key component for lithium-ion batteries. Building on our technology and global network, we aim to drive battery innovations for the future of energy storage. As Honda works toward carbon neutrality by 2050, our partnership will ensure a stable supply of separators in North America while enhancing battery performance and durability, contributing to the energy transition and sustainability."