Asahi Kasei invests nearly $1.6B for its EV Battery Component Plant

As Canada strengthens its position as a global hub for electric vehicle (EV), Japanese-based chemicals and materials company, Asahi Kasei, celebrated the groundbreaking of its recently announced  lithium-ion battery component plant in Port Colborne, Ontario, an investment of nearly $1.6 billion.

Breaking Ground in Canada’s Growing EV Landscape

This event marked a milestone moment for this ambitious project that will manufacture the base coating for Hipore™ lithium-ion battery separators, which are essential for EV batteries. Commercial production is expected to begin in 2027. With this investment, Asahi Kasei is joining a growing number of companies recognizing Canada as a global powerhouse in the EV better supply chain.

This project is crucial in providing a range of economic and environmental benefits. The plant is expected to create numerous high-quality jobs in both construction and ongoing operations and is poised to boost the local economy bringing a positive economic ripple effect for suppliers and services. From an environmental perspective, producing battery separators in Canada reduces the carbon footprint associated with long-distance transport of components, which lowers the overall emissions in the EV battery supply chain. Further aligning with Canada’s climate and sustainability targets, sustainable production practices at the facility will set a standard in green manufacturing.

Invest in Canada has been closely involved in supporting and guiding Asahi Kasei, offering resources and strategic assistance to facilitate the development of this project. By fostering essential connections, guiding the company through government programs, coordinating site visits and securing partnerships across various government departments, Invest in Canada has ensured comprehensive support. Our team will continue to provide ongoing assistance as the project progresses.

Canada: A global leader in EV battery manufacturing

In recent years, Canada’s robust EV battery sector has seen substantial growth, attracting large-scale investments from major global companies like Asahi Kasei who recognize its unique assets including:

• Honda: May 2024—Electric vehicle assembly plant expansion, Alliston, Ontario.
• Northvolt: September 2023—Cathode active materials (CAM) manufacturing facility, electric vehicle battery cell manufacturing hub, Saint-Basile-le-Grand and McMasterville, Québec.
• EcoProBM, SK On: August 2023—Installation of cathode active materials production, Bécancour, Québec.
• Volkswagen (PowerCo SE): April 2023—Electric vehicle battery manufacturing, St. Thomas, Ontario.
• Ford: April 2023—Transformation of Oakville’s Assembly Complex into a Canadian electric manufacturing hub, Oakville, Ontario.
• General Motors (GM) Canada: December 2022—Canada’s first large-scale electric vehicle plant opens its doors to produce Brightdrop electric vans, Ingersoll, Ontario.
• General Motors and POSCO Future M: March 2022—Installation of cathode active materials production, Bécancour, Québec.
• LG Energy Solution and Stellantis: March 2022—Installation of electric vehicle battery manufacturing, Windsor, Ontario.

“These are leading global companies that have chosen Canada for major investments in the North American market. Their confidence in Canada will help to provide Canadians with good-paying jobs, new technologies and numerous spin-off business opportunities.” — Laurel Broten, CEO, Invest in Canada.

Canada’s abundant natural resources—including critical minerals, highly educated and skilled workforce, robust infrastructure, stable and supportive government policies create an ideal environment for investment in the EV battery sector as the demand shows sustained growth globally. Reflecting this status, Canada holds the first position in Bloomberg NEF’s global EV battery supply chain ranking.

Unlocking Opportunities for a Sustainable Future

By positioning itself as a central hub for EV battery production, Canada is driving economic growth while contributing to global efforts to reduce carbon emissions and fight climate change. Investments like Asahi Kasei’s are critical to meet these goals and are unlocking new opportunities for innovation and green manufacturing, solidifying Canada’s leadership in clean technology and sustainable development. 

As we are navigating this transformative shift that’s revolutionizing technology needs, operations, and product delivery, Canada’s EV battery sector is set to face both challenges and opportunities with a demand that Canada is uniquely positioned to meet. 
Canada’s ascent in the EV supply chain is paving the way toward a cleaner and greener future and signals a new era of growth, innovation and sustainable progress, where economic opportunities and climate goals go hand in hand.