Construction of Asahi Kasei’s $1.56-billion battery separator plant in Port Colborne, Ontario, is continuing despite Honda Canada’s decision to indefinitely suspend its broader $15-billion electric vehicle investment plans in the province.
Honda recently announced it was pausing its planned EV expansion in Ontario, citing changing business conditions. The suspension includes previously announced plans for a new electric vehicle assembly plant and a standalone EV battery facility in Alliston, Ontario. The decision raised questions about related supply chain projects tied to Honda’s Canadian EV ambitions, including Asahi Kasei’s battery separator facility in Niagara Region.
However, Asahi Kasei said the Port Colborne project remains on track. In a statement, the company said it remains “fully committed” to both the project and the local community. According to Asahi Kasei, construction and equipment installation continue as scheduled, with commercial production now targeted for the first half of 2029 to better align with evolving market conditions.
The Japanese chemical company and Honda previously announced plans to form a joint venture around an existing Asahi Kasei Canadian subsidiary, with Honda agreeing to invest approximately $240 million for a 25% stake in the project. When originally unveiled two years ago, the companies had targeted a commercial startup date of 2027. Asahi Kasei officially broke ground on the Port Colborne facility in November 2024.
The project remains part of Canada’s broader effort to establish a domestic electric vehicle supply chain spanning critical minerals, battery materials and advanced manufacturing. While slowing EV demand growth and shifting market conditions have prompted several automakers to reassess expansion plans, major battery and materials investments continue across Ontario as governments and industry work to position Canada as a long-term North American EV manufacturing hub.