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PORT COLBORNE, ONT. — ��������ion of 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, is now officially underway.

The plant is the first of its kind in Canada. The start of construction 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, a release reads.

“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 in a statement. “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.”

Asahi Kasei Corporation is a multinational company headquartered in Tokyo, Japan. On Nov. 1 the company and Honda Motor Co., Ltd. announced that the two companies have signed a shareholders’ agreement to convert an existing Asahi Kasei subsidiary in Canada into a joint venture company.

Earlier this year, Honda announced plans to establish Canada’s first EV supply chain with four new manufacturing plants, including this separator plant. 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, the release states.

Since 2020, Ontario has attracted over $45 billion in EV and battery investments from companies including Honda, GM, Ford and Stellantis.