PORT
COLBORNE, ON, May 14, 2024
/CNW/ - Canada is a global leader
in the electric vehicle (EV) market. As demand for EVs continues to
grow, we want more of these vehicles to be assembled right here in
Canada. In the last four years,
more than $46 billion has been invested by auto, EV battery,
and battery component manufacturers across the country, with
billions more in the pipeline. These global companies want a
reliable partner with world-class talent, and this is exactly what
we have to offer.
Today, the Prime Minister, Justin
Trudeau, and the Premier of Ontario, Doug
Ford, are welcoming Asahi Kasei Corporation's investment
of approximately $1.6 billion to
build an EV battery separator plant in Port Colborne, Ontario. As medium- to
long-term growth is forecasted in the North American EV market, the
company expects to make additional multi-billion-dollar investments
through multiple phases. Details regarding direct jobs created by
this investment are currently being finalized and will be announced
at a later date.
Asahi Kasei's decision to build this new facility in
Port Colborne is a testament to
Canada and Ontario's competitive business environment,
highly skilled workforce, and dependable supply chains. The project
is expected to benefit from federal support through the Clean
Technology Manufacturing investment tax credit. Ontario expects to support this project with
both direct and indirect incentives.
Our auto sector has long been an engine of economic growth,
driving innovation and creating good-paying jobs for Canadians. As
demand for EVs continues to grow, we are well positioned to attract
further investment, solidifying our leadership in auto, EV battery,
and battery material industries, and creating economic growth and
opportunities now and for generations to come.
Quotes
"Canada bet big on electric
vehicles, and today, the biggest manufacturers in the world are
building them right here in Canada. Asahi Kasei's investment is another
vote of confidence in our auto industry and auto workers. We're
creating good-paying jobs, keeping the air clean, and putting
Canada at the forefront of this
exciting opportunity."
— The Rt. Hon. Justin Trudeau, Prime Minister of
Canada
"Today's announcement is more good news for Ontario's world-leading electric vehicle
manufacturing sector and the thousands of workers who are
benefiting from the billions of investments being made in our
province. Asahi Kasei's investment will bring economic growth and
good-paying jobs to workers in Port
Colborne and across the Niagara Region. It's also yet
another show of confidence in our government's ongoing work to
build a domestic EV supply chain in Ontario that benefits workers across the
province, from critical mineral extraction in the Ring of Fire to
battery manufacturing in Port
Colborne and everywhere in between."
— The Hon. Doug Ford, Premier of Ontario
"Canada is home to the talented
workers, raw materials, clean electricity, and specialized
production capabilities needed to build electric vehicles – and
these strengths have attracted billions in private investment
to grow our EV supply chain. This progress attracting significant
investment is underpinned by six major economic investment tax
credits, which are incentivizing businesses to invest in
Canada, create good-paying jobs,
and keep us on track to reach net-zero by 2050."
— The Hon. Chrystia
Freeland, Deputy Prime Minister and Minister of Finance
"Canada is one of the few
countries in the world that has everything it needs to be a global
leader in EV and battery manufacturing: talent, green energy, and
critical minerals. We welcome Asahi Kasei to the list of global
companies choosing Canada and
working alongside us as we transition to a green transportation
future."
— The Hon. François-Philippe
Champagne, Minister of Innovation, Science and Industry
"Over the last four years, Ontario has become the epicentre of
Canada's electric vehicle supply
chain, attracting billions in investments by global automakers and
suppliers of EV batteries and battery materials. Today, our
government is proud to welcome Asahi Kasei as the newest addition
to Ontario's thriving automotive
ecosystem. Thank you, Asahi Kasei, for trusting Ontario as a partner in your success."
— The Hon. Vic Fedeli,
Ontario's Minister of Economic
Development, Job Creation and Trade
"As demand for electric vehicles – and the lithium-ion batteries
that power them – continues to rise, we are eager to bring the
first Hipore™ wet-process lithium-ion separator manufacturing
facility to Canada. Backed by the
abundant renewable resources, skilled talent, and strong local
community support here in Port
Colborne, we will be able to better serve our partners in
the region as well as the broader North American automotive market
from this facility."
— Koshiro Kudo, President and Representative Director,
Asahi Kasei Corporation
Quick Facts
- Asahi Kasei Corporation is a multinational company
headquartered in Tokyo,
Japan.
- Asahi Kasei's new plant in Port
Colborne will produce Hipore™ battery separators, an
essential component of the lithium-ion batteries used in EVs which
makes batteries more sustainable and durable. Construction of the
facility will be completed by the end of 2024 and the plant is
expected to be commercially operational in 2027.
- The Hipore™ battery separator is a microporous polyolefin
sheet that prevents the anode and cathode from contacting one
another and causing a short circuit, while enabling lithium ions to
pass back and forth during battery charging and discharging.
- It is projected that the global sales of EVs will be over three
times higher in 2030 than it was in 2023, and Canada is well positioned to be a major player
in EV production.
- In Bill C-69, the Budget Implementation Act, 2024,
the government proposes to implement the Clean Technology
Manufacturing investment tax credit, which would be available
retroactively as of January 1, 2024.
This refundable investment tax credit would be equal to 30 per cent
of investments in machinery and equipment, for eligible activities
related to the manufacturing or processing of clean technologies,
or the extraction and processing of key critical minerals. It would
focus on activities needed to achieve a net-zero future, such as
the manufacturing of zero-emission vehicles and batteries as well
as purpose-built and integral upstream components for these
activities.
- To seize the opportunities of Canada's world-leading EV supply chain
potential, Budget 2024 announced a new 10 per cent EV Supply
Chain investment tax credit to attract private investment and
create good-paying jobs across the EV supply chain ‒ from EV
assembly, to battery production, to cathode active material
production. This complements the 30 per cent Clean Technology
Manufacturing investment tax credit, which is part of Canada's $93 billion suite of major
economic investment tax credits.
- Earlier this year, BloombergNEF ranked Canada's attractiveness to build EV battery
supply chains first in the world, surpassing China which has held the top spot since the
ranking began.
- Canada has attracted
investments across our EV supply chain, from mining to
manufacturing. With Asahi Kasei's new project,
these investments now total more than
$46 billion since 2020.
- Transportation accounts for about a quarter of our emissions in
Canada. That is why the Government
of Canada has an ambitious target
of 100 per cent zero-emission vehicle sales by 2035, coupled with a
suite of support measures from charging infrastructure to purchase
incentives.
Associated Link
- Budget 2024: Fairness for Every Generation
This document is also available at https://pm.gc.ca
SOURCE Prime Minister's Office