Japan’s Asahi Kasei Battery Separator Corporation officially broke ground on a new lithium-ion battery separator manufacturing facility located in Port Colborne, Ontario, on Nov. 14. The $1.7 billion plant marks a milestone as it will be Canada’s first large-scale wet-process separator once it is built. Battery separators serve as a key component in electric vehicles (EVs), enhancing energy density and ensuring lasting performance in lithium-ion batteries. 

The project will operate under a joint venture (JV) between Asahi Kasei and Honda Canada Inc., officially announced on Nov. 1. Construction and production activities at the plant site will be managed under the JV. 

As part of the JV, both companies agreed to transform E-Materials Canada Corporation, a Canadian subsidiary of Asahi Kasei, into the new JV. The shareholders’ agreement will see Honda Canada invest around $417 million and gain a 25 per cent stake in the JV.  

The Port Colborne manufacturing plant is one of four planned facilities that Honda first announced in April, with the aim of creating Canada’s first comprehensive EV supply chain.  

"The start of construction on Asahi Kasei’s battery separator plant is a major step forward in building Ontario’s electric vehicle supply chain, connecting minerals in the north with electric vehicle battery makers and automakers across the province,” said Ontario Premier Doug Ford in a Nov. 14 press release. “This facility will help lay the groundwork to produce electric vehicles from start to finish by Ontario workers with Ontario-made components, bringing better jobs and bigger pay cheques to communities across the province.” 

Earthworks at the site have begun, with Asahi Kasei hiring Ontario companies and contractors to undertake the work. In the coming months, visible construction phases will commence, which include structural development and utility connections needed to support the plant.  

Commercial production is planned to begin sometime in 2027 once the required permits and approvals have been received. When completed, the plant is expected to create over 300 full-time jobs and produce around 700 million square metres of coated lithium-ion battery separator annually, supplying roughly one million EVs per year. 

Coated battery separators are considered to be an essential part of lithium-ion batteries, as they allow lithium ions to flow through the battery while preventing the positive and negative electrodes from touching, which safeguards against short circuits and enables the storage of energy. 

“This facility signifies a bold step in advancing innovation in battery technology,” said Koshiro Kudo, president and representative director of Asahi Kasei Corporation, in the Nov. 14 press release. “We are establishing a centre of excellence here in Port Colborne that will further position Asahi Kasei as a leader in meeting the growing demand for electric vehicle battery separators across North America, helping drive the energy transition forward with cutting-edge technology.”