Asahi Kasei announced that it will construct an integrated plant in Ontario, Canada for the base film manufacturing and coating of Hipore?? lithium-ion battery (LIB) separator. In relation to this plant, Asahi Kasei has concluded a basic agreement with Honda Motor Co.

Ltd. (Honda) and the two parties are currently studying joint investment. Also with regard to the Canadian plant, it has been agreed that Asahi Kasei Battery Separator Corp.2, which is scheduled to be established in October 2024, will receive funding from the Development Bank of Japan Inc. (DBJ) through the issuance of preferred shares. Furthermore, receipt of financial support from the federal government of Canada and the provincial government of Ontario regarding this investment is expected.

Outline of the Canadian investment (plant construction) Location Ontario, Canada; Plant overview; Integrated plant for the base film manufacturing and coated of Hipore?? lithium - lithium-ion battery separator; Total investment amount Approximately Y=180 billion; Production capacity Approximately 700 million m2 per year (as coated film); Start of operation; and Commercial start-up scheduled in 2027. The necessary funds for this investment will be provided to ES Materials Canada Corp., the Canadian separator business company, and E- Materials Canada Corp., the local manufacturing company responsible for plant construction and manufacturing, through ES Materials Holdings Corp., the North American separator business company.

Asahi Kasei positions its Energy Storage related business as one of the "10 Growth Gears" (GG10) expected to drive future growth in its medium-term management plan for fiscal 2024, which is focused on the theme "Be a Trailblazer." The core of its Energy Storage business is Hipore?? wet-process LIB separator, which has been leading technological innovation based on over 40 years of business history, and is currently expanding its sales in automotive applications in addition to consumer electronics applications. To meet North American demand for battery separator for plug-in electric vehicles and to join North American LIB supply chains being established, in part as an effect of governmental clean energy policies, the decision was made to construct an LIB separator manufacturing plant in Ontario, Canada.

Asahi Kasei and Honda have reached a basic agreement based on the shared understanding that it is essential to establish a supply chain for the stable supply of high-performance batteries for the North American plug-in electric vehicle market, which is expected to grow over the medium to long term. Studies are advancing for the establishment of a joint venture to manufacture Hipore?? separator for batteries installed in EVs made by Honda and other vehicle manufacturers for the North American market.