Construction of the $1.56 billion Asahi Kasei battery separator plant in Port Colborne, Ontario, is progressing despite Honda Canada’s recent decision to indefinitely halt its $15 billion electric vehicle (EV) investment plans. Honda attributed the suspension to changing business conditions, which included postponing the development of an EV plant and a stand-alone EV battery plant in Alliston, Ontario.
About two years ago, Asahi Kasei and Honda announced a joint venture to convert an existing Asahi Kasei subsidiary in Canada, with Honda investing approximately $240 million for a 25% stake in the Port Colborne plant. The companies initially aimed for the factory to commence commercial operations by 2027.
Asahi Kasei reiterated its commitment to the Port Colborne project, confirming that the plant’s construction and equipment installation are on track, with commercial production expected to start in the first half of 2029 to align with market trends. The groundbreaking ceremony for the Port Colborne plant took place in November 2024.
Despite Honda’s suspension of EV projects in May 2025 due to financial losses, the company assured that the current jobs and production of Honda Civic and CR-V models at the existing Alliston facility would not be affected. The EV expansion was anticipated to create 1,000 new manufacturing positions at the Ontario plant.
Port Colborne Mayor Bill Steele expressed confidence in Asahi Kasei’s commitment to the project, emphasizing ongoing collaboration with city officials to address infrastructure requirements. Ongoing work on the plant, which involves numerous trades, has led to a two-year delay in the planned opening date, with nearly 925 workers involved daily.
Asahi Kasei emphasized its long-term strategy to cater to various customers and applications beyond the partnership with Honda, preparing the Canadian facility to meet broader market demands. The company highlighted that the Port Colborne plant would be Canada’s first large-scale wet-process separator facility, crucial for enhancing the performance of lithium-ion batteries in EVs and other energy storage applications.