Joint Venture with Honda Will Strengthen Ontario's End-to-End Electric Vehicle and Battery Supply Chain
November 14, 2024
PORT COLBORNE – The Ontario government is welcoming the start of construction on Asahi Kasei's $1.7 billion manufacturing facility in Port Colborne to produce lithium-ion battery separators, a key component of Electric Vehicle batteries. The new plant, the first of its kind in Canada, is a significant part of Ontario's growing end-to-end Electric Vehicle and battery supply chain, accelerating the production of Ontario-made Electric Vehicles and creating better jobs with bigger paycheques in Niagara.
"Today's groundbreaking is great news for workers and jobs in Port Colborne and the entire Niagara Region as Asahi Kasei prepares to build automotive components to supply the Electric Vehicle supply chain of the future," said Sam Oosterhoff, MPP for Niagara West.
"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 Hon. Doug Ford, Premier of Ontario.
"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 paycheques to communities across the province."
The start of construction closely follows the recent announcement of a joint venture between Asahi Kasei and Honda Canada that will be established to oversee construction and production activities at the Port Colborne plant.
Earlier this year, Honda announced plans to establish Canada's first comprehensive Electric Vehicle supply chain with four new manufacturing plants, including this separator plant in partnership with Asahi Kasei. With phase one expected to be complete in 2027, the separator plant is projected to produce enough material to supply approximately one million Electric Vehicles annually and create more than 300 jobs in Niagara.
"Asahi Kasei's investment in Ontario's auto sector represents a clear vote of confidence in our province's world-class workforce, dependable supply chains, competitive business environment and reliable clean energy," said Hon. Vic Fedeli, Minister of Economic Development, Job Creation and Trade.
"As our government continues to position Ontario as the epicentre of electric vehicle innovation, we look forward to seeing the partnership between Asahi Kasei and Honda come to fruition and bring economic growth and good-paying jobs to Niagara."
"Niagara warmly welcomes Asahi Kasei and is proud to support Ontario's momentum as a leader in the electric vehicle supply chain," said Jim Bradley, Chair of the Regional Municipality of Niagara.
"This transformative investment highlights our region's readiness and dedication to fostering innovation and growth, as well as demonstrating what is possible when all levels of government work together."
"I am truly delighted to celebrate the groundbreaking of the new Asahi Kasei battery separator plant," said Bill Steele, Mayor of the City of Port Colborne.
"This project marks an historic investment in our community and is a shining example of the fantastic outcomes that can be achieved when we collaborate and pursue common goals."
Since 2020, Ontario has attracted over $45 billion in Electric Vehicle and battery investments from companies including Honda, General Motors, Ford and Stellantis, along with key parts and component producers, helping to build-out the province's end-to-end supply chain and solidifying the province as a leader in the Electric Vehicle sector.
Quick Facts:
Asahi Kasei is a multinational company headquartered in Tokyo, Japan.
On November 1, 2024, Asahi Kasei and 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.
The Asahi Kasei plant in Port Colborne will produce battery separators, an essential component of the lithium-ion batteries used in Electric Vehicles which make batteries more sustainable and durable. Ontario expects to support this project with both direct and indirect incentives. The facility is expected to be commercially operational in 2027.
Asahi Kasei's investment is part of a multi-phase project. Details on the full scope of the project, job creation, and government supports will be announced at a later date.
Over the past four years, Ontario has attracted over $45 billion in new investments in vehicle manufacturing and the Electric Vehicle battery supply chain.
- Ontario's auto manufacturing sector supports over 93,000 direct jobs and hundreds of indirect jobs across the province. It includes over 700 parts firms, over 500 tool and die and mold makers, and over 400 connected and autonomous vehicles companies.
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