Asahi Kasei’s Battery Plant Set to Accelerate Canada’s EV Sector Growth
Canada continues to solidify its position as a global leader in the electric vehicle (EV) market with significant investments pouring into the EV supply chain. Recently, Asahi Kasei Corporation announced a monumental investment of approximately $1.6 billion to establish an EV battery separator plant in Port Colborne, Ontario. This strategic move underscores Canada’s commitment to fostering a robust EV industry, aligning with ambitious targets for carbon reduction and sustainable transportation.
“Canada bet big on electric vehicles, and today, the biggest manufacturers in the world are building them right here in Canada. Asahi Kasei’s investment is another vote of confidence in our auto industry and auto workers. We’re creating good-paying jobs, keeping the air clean, and putting Canada at the forefront of this exciting opportunity.”
The Rt. Hon. Justin Trudeau, Prime Minister of Canada
Becoming an EV Leader: A Federal Priority
As part of its broader strategy to support clean technology manufacturing, the Canadian government has introduced several initiatives to attract investments like Asahi Kasei’s. The Clean Technology Manufacturing investment tax credit, proposed under Bill C-69 and retroactively available from January 1, 2024, offers significant financial incentives for investments in clean technologies and critical minerals essential for achieving a net-zero future. This aligns with Canada’s overarching goal of achieving 100% zero-emission vehicle sales by 2035, supported by a suite of complementary measures from infrastructure development to consumer incentives.
Asahi Kasei joins other industry giants like Honda in expanding Canada’s EV supply chain infrastructure. With Honda’s recent $15 billion investment announcement to establish comprehensive EV manufacturing capabilities in Ontario, Canada is poised to become a global hub for EV production and innovation. These investments not only enhance Canada’s economic resilience but also create high-quality jobs and strengthen local supply chains.
Asahi Kasei Corporation: Pioneering EV Battery Technology
Asahi Kasei Corporation, headquartered in Tokyo, Japan, is renowned globally for its advanced materials and innovative technologies. The company’s new plant in Port Colborne will specialize in producing Hipore™ battery separators, critical components that enhance the sustainability and durability of lithium-ion batteries used in EVs. Scheduled for completion by the end of 2024, with commercial operations expected by 2027, the facility represents a significant leap forward in Canada’s capability to produce essential EV components domestically.
Hipore™ Battery Separator Technology
The Hipore™ battery separator, a microporous polyolefin sheet, plays a pivotal role in preventing short circuits between a battery’s anode and cathode while facilitating the passage of lithium ions during charging and discharging cycles. This technology not only enhances battery performance but also contributes to the overall safety and longevity of EV batteries, crucial for maintaining consumer confidence in electric mobility solutions.
Benefits for Ontario and Canada
The establishment of Asahi Kasei’s battery plant is expected to yield substantial benefits for Ontario and Canada. Beyond creating direct employment opportunities, the project will bolster local economies through increased economic activity and the development of a skilled workforce specialized in advanced manufacturing. Moreover, by localizing production of key EV components like battery separators, Canada enhances its supply chain resilience and reduces dependency on foreign markets.
“Over the last four years, Ontario has become the epicentre of Canada’s electric vehicle supply chain, attracting billions in investments by global automakers and suppliers of EV batteries and battery materials. Today, our government is proud to welcome Asahi Kasei as the newest addition to Ontario’s thriving automotive ecosystem. Thank you, Asahi Kasei, for trusting Ontario as a partner in your success.”
The Hon. Vic Fedeli, Ontario’s Minister of Economic Development, Job Creation and Trade
Access Automotive Funding for Your EV Business
Canada’s rise to be a global leader in EV production is propelled by strategic investments from industry leaders like Asahi Kasei. With over $46 billion invested in the EV supply chain since 2020, Canada continues to attract global attention and investment, surpassing traditional leaders like China in BloombergNEF’s rankings for EV battery supply chain attractiveness. Asahi Kasei’s commitment not only strengthens Canada’s industrial capabilities but also underscores its pivotal role in shaping the future of clean transportation worldwide.
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