This was an “all-hands-on deck, team Niagara” effort that will become the
future of the Niagara economy.

Port Colborne, ON – May 14, 2024 – Prime Minister Justin Trudeau along with Premier Doug Ford, Minister of Innovation, Science and Industry for the Federal Government, François-Philippe Champagne, Minister of Federal Economic Development for Southern Ontario, Filomena Tassi, and Minister of Economic Development, Job Creation and Trade for the Province of Ontario, Vic Fedeli, announced today that the Asahi Kasei Corporation will partner with Honda to build Canada's first-ever lithium battery separator plant in Port Colborne.

Asahi Kasei Corporation’s will invest approximately $1.6 billion and is expected that the company will make additional multi-billion-dollar investments through multiple phases.
Niagara Centre MP, Vance Badawey stated, “Niagara has long been a leader in the auto sector. This investment will continue that long standing tradition which will be an engine to economic prosperity, creating good-paying jobs right here in Niagara.”

The project is expected to benefit from federal support through the Clean Technology Manufacturing investment tax credit. Ontario expects to support this project with both direct and indirect incentives.

“This project was an all-hands-on deck, team Niagara effort that will become the future of the Niagara economy,” stated Badawey. “This collaboration exemplifies a shared vision for innovation and underscores the importance of strategic partnerships in driving technological advancements within the North American EV battery supply chain. Asahi Kasei’s decision to build this new facility in Port Colborne is a testament to Niagara’s competitive business environment, highly skilled workforce, and dependable supply chain.”

QUOTES

“This is great news for the City of Port Colborne and the Region of Niagara. This investment by Asahi Kasei in the City of Port Colborne will increase our nation’s productivity and create good paying jobs right here in Niagara. It will strengthen the Electric Vehicle (EV) supply chain for Honda and secure the future of Canada’s automotive industry. It will add to the ongoing growth of the Ports Niagara Multimodal Trade Corridor, an integral part of the Niagara Foreign Trade Zone. Sincere appreciation to everyone involved. This was an “all-hands-on deck, team Niagara” effort that will become the future of the Niagara economy. By working together, we are continuing to build a stronger community here in Port Colborne.”
Vance Badawey, Member of Parliament representing Niagara Centre, Parliamentary Secretary to the Minister of Transport

“I am so thrilled to welcome Asahi Kasei as we celebrate this tremendous investment in Port Colborne and Niagara. This success would not have been possible without the incredible cooperation of all levels of government, the collaboration with our private business development partners, and the vision of the Asahi Kasei team. This investment is transformational for our region and I want to extend my sincere congratulations and appreciation to everyone involved in bringing it to fruition.”
William Steele, Mayor, City of Port Colborne

Quick Facts

• Asahi Kasei Corporation is a multinational company headquartered in Tokyo, Japan.
• Asahi Kasei’s new plant in Port Colborne will produce Hipore™ battery separators, an essential component of the lithium-ion batteries used in EVs which makes batteries more sustainable and durable. Construction of the facility will be completed by the end of 2024 and the plant is expected to be commercially operational in 2027.
• The Hipore™ battery separator is a microporous polyolefin sheet that prevents the anode and cathode from contacting one another and causing a short circuit, while enabling lithium ions to pass back and forth during battery charging and discharging.
• It is projected that the global sales of EVs will be over three times higher in 2030 than it was in 2023, and Canada is well positioned to be a major player in EV production.
• In Bill C-69, the Budget Implementation Act, 2024, the government proposes to implement the Clean Technology Manufacturing investment tax credit, which would be available retroactively as of January 1, 2024. This refundable investment tax credit would be equal to 30 per cent of investments in machinery and equipment, for eligible activities related to the manufacturing or processing of clean technologies, or the extraction and processing of key critical minerals. It would focus on activities needed to achieve a net-zero future, such as manufacturing of zero-emission vehicles and batteries as well as purpose-built and integral upstream components for these activities.
• To seize the opportunities of Canada’s world-leading EV supply chain potential, Budget 2024 announced a new 10 per cent EV Supply Chain investment tax credit to attract private investment and create good-paying jobs across the EV supply chain ‒ from EV assembly, to battery production, to cathode active material production. This complements the 30 per cent Clean Technology Manufacturing investment tax credit, which is part of Canada’s $93 billion suite of major economic investment tax credits.
• Earlier this year, BloombergNEF ranked Canada’s attractiveness to build EV battery supply chains first in the world, surpassing China which has held the top spot since the ranking began.
• Canada has attracted investments across our EV supply chain, from mining to manufacturing. With Asahi Kasei’s new project, these investments now total more than $46 billion since 2020.
• Transportation accounts for about a quarter of our emissions in Canada. That is why the Government of Canada has an ambitious target of 100 per cent zero-emission vehicle sales by 2035, coupled with a suite of support measures from charging infrastructure to purchase incentives.