A Japanese company has unveiled plans to construct a plant valued at approximately $1.6 billion in the Niagara Region. This facility will specialize in producing a crucial component for electric vehicle batteries, enhancing Honda's supply chain within the province.

Honda recently disclosed its intentions to establish an electric vehicle battery plant adjacent to its Alliston assembly plant in Ontario. This initiative is part of a $15-billion project aimed at establishing a robust supply chain for the automaker within the province. Port Colborne, Ontario, was revealed as the chosen location for a segment of this supply chain.

Asahi Kasei, the Japanese company, anticipates that its battery separator plant will be operational by 2027. Additionally, another entity, POSCO Future M Co., Ltd., is slated to construct a plant for cathode active material and precursor processing, although the specific location for this facility is yet to be disclosed.

The comprehensive agreement with Honda encompasses up to $5 billion in public funds. The separator plant is expected to benefit from the federal Clean Technology Manufacturing investment tax credit, along with both direct and indirect support from the province.