The Ontario government says it 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 (EV) batteries.

The new plant, which is the first of its kind in Canada, will produce battery separators, an essential component of the lithium-ion batteries used in EVs which make batteries more sustainable and durable. The facility is expected to be commercially operational in 2027, and the province says it intends to support the project with both direct and indirect incentives.

"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 Premier Doug Ford. “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 Inc. 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 EVs annually and create more than 300 jobs in the region.

Details on the full scope of the project, job creation, and government supports will be announced at a later date.

“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 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 the Niagara Region.”

Since 2020, Ontario has attracted over $45 billion in EV and battery investments from companies including Honda, GM, Ford and Stellantis, along with key parts and component producers.