Asahi Kasei and Honda Motor 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 25 April 2024.

The two companies plan to convert E-Materials Canada Corporation (E-Materials), a wholly owned subsidiary of an Asahi Kasei subsidiary in Canada, into a joint venture between Asahi Kasei and Honda to be renamed Asahi Kasei Honda Battery Separator Corporation (tentative name).

This will be based on Honda Canada Inc., a Honda subsidiary in Canada, acquiring a 25% stake by subscribing to new shares to be issued by E-Materials through a third-party allotment. Honda will invest a total of approximately C$417 million (approximately US$300 million) combining the subscription of new shares and other investment in this joint venture.

The two companies will combine each other’s strengths, such as high value-added material technologies and electrification technologies, to produce high-quality separators to be utilized for lithium-ion batteries that will accelerate the realization of high-performance electrified vehicles.

The two companies plan to establish and start the operation of the joint venture company in early 2025, subject to obtaining permits and approvals from relevant authorities.