Asahi Kasei, Syensqo making big investments for EVs in North America

Big investment in electric vehicles in North America include big projects for plastics suppliers with both Asahi Kasei Corp. and Syensqo taking major steps toward building plants to make parts for lithium-ion batteries.

Asahi Kasei said April 25 it will spend $1.1 billion to build an integrated plant in Ontario to make films and coating for its Hipore-brand wet process battery separator.

On the same day, Syensqo, a former unit of Solvay Group, broke ground on a previously-announced battery-grade polyvinylidene fluoride (PVDF) resin plant in Augusta, Ga. Company officials were joined by federal and local government at the event.

Asahi Kasei's project was unveiled as part of Honda Motor Corp.'s announcement it will spend US$11 billion in Alliston, Ontario, on "a comprehensive EV value chain in Canada ... from the procurement of raw materials mainly for batteries, to the production of finished EVs."

No specific location has been selected for the Asahi Kasei site. Officials said the Tokyo-based firm has "a basic agreement with Honda Motor Co., which may invest in the plant.

Asahi Kasei Battery Separator Corp. will be established in October to receive funding from the Development Bank of Japan Inc. (DBJ) through issuance of preferred shares. The Canadian and Ontario governments also will provide financial support for the project.

The $1.1 billion plant will have annual production capacity of more than 1.5 billion pounds of coated film. It's expected to begin commercial production in 2027.

"The Hipore business will play an important role in Asahi Kasei's growth over the medium term," Senior Executive Officer Hiroyoshi Matsuyama said in the release. "Capturing market growth in North America will be essential for us."

He added that the partnership with Honda "allows us to make a meaningful contribution to improvement of [battery] performance in light of anticipated growth in the electric vehicle market and the energy transition in North America."

In October 2023, Asahi Kasei announced investments of almost $300 million to install new lines making LIB separators at plants in the U.S., Japan and South Korea. The new lines are expected to start up in the first half of the firm's 2026 fiscal year.

Asahi Kasei is an industrial conglomerate that employs 48,000 worldwide. The firm's Asahi Kasei Plastics North America unit ranks as one of North America's 30 largest compounders, making compounds based on polypropylene and engineering resins.

Syensqo officials said the Georgia plant will be the largest PVDF production facility in North America, supplying the growing needs of domestic energy storage markets.

PVDF is a fluoropolymer that's used as a lithium-ion binder and separator coating in batteries. Syensqo makes the material under the Solef brand name. Officials said the material allows EVs to go farther on each charge, extends battery life and improves battery safety.

"Today … we are translating our ambitions to help protect our planet and advance humanity into action," CEO Ilham Kadri said in a news release. "We are proud to contribute in shaping the future of energy storage to unlock the market potential of electrification and boost the adoption of EVs in the U.S."

The site is expected to make enough PVDF for more than 5 million EV batteries per year, or 45 percent of expected PVDF demand needed by 2030. Officials said the plant will create new and reliable supply for the growing U.S. EV battery market, as well as add hundreds of jobs throughout the value chain.

"We're ready to become a part of the 'Made in America' battery belt and realize our commitment to driving sustainable EV innovation while bolstering economic growth in the Augusta region," Chief North America Officer Mike Finelli said.

The U.S. Department of Energy awarded Syensqo a $178 million grant to help build the new plant. The grant is part of the U.S. Infrastructure Investment and Jobs Act to expand domestic manufacturing of batteries for EVs and the electrical grid. The plant will create about 500 local construction jobs and more than 100 highly skilled local manufacturing jobs once complete.

Syensqo also is investing $1 million to support local workforce development by expanding access to educational resources and technical training. Its efforts will be aimed at economically disadvantaged, underrepresented and rural communities, who are also expected to be a priority for recruitment for the project.

As part of that investment, Syensqo will make contributions to local higher education institutions, including Augusta Technical College.

The Augusta plant is part of a joint venture between Syensqo and Mexican specialty chemicals maker Orbia Advance Corp. SAB de CV. Officials said Orbia's raw material assets and production expertise and Syensqo's PVDF will ensure a consistent supply.

Syensqo was split from Solvay late last year. The new company includes Solvay's Specialty Polymers unit, as well as growth platforms in batteries, green hydrogen, thermoplastic composites, renewable materials and biotechnology. Syensqo business units had sales of almost $9 billion in 2022.