Battery plant in Port Colborne, Ont., to see 'minimal' impact from Honda investment withdrawal: partner

The company behind a battery plant in Ontario's Niagara Region says it's still planning to start operations in 2027 despite car maker Honda Canada postponing a $15-billion electric vehicle investment in the province.

A year ago, Japanese multinational Asahi Kasei Corporation announced it would open a battery separator manufacturing facility in Port Colborne. Separators prevent lithium-ion batteries from short-circuiting and overheating. 

When it comes to Honda's decision, "we are currently assessing the specific impact, but we expect it to be minimal," said Holli Hughes, a spokesperson for Polypore International, which is owned by Asahi Kasei. "The planned start of operations at the [Port Colborne] plant in 2027 remains unchanged, as we have sales planned for other companies."

In May 2024, Mayor Bill Steele said Asahi Kasei was making the biggest investment in that city in a century and that the company chose Port Colborne for reasons including its "welcoming people" and access to rail, water, highways and the Canada-U.S. border. 

CBC Hamilton asked a Port Colborne spokesperson if the mayor or the city would comment on the Honda announcement Tuesday but did not hear back before publication. 

Weeks before Asahi Kasei announced it would set up in Port Colborne, Honda said it would build an EV battery plant next to its Alliston, Ont., assembly plant as part of an effort to produce EVs in the province. 

Now, Honda Canada is postponing that plan for two years, citing "the recent slowdown of the EV market," company spokesperson Ken Chiu told CBC News in an email statement. "The company will continue to evaluate the timing and project progression as market conditions change."

Chiu said the pause would have "no impact" on current employment or production at the Alliston plant.

Honda is also a partner on the Niagara separator plant, having announced the partnership with Asahi Kasei in November. The two formed a joint venture with 75 per cent of the investment coming from Asahi Kasei Battery Separator Canada Corporation and 25 per cent from Honda Canada, according to a news release.

Asahi Kasei spokesperson Christian OKeefe said Tuesday that the joint venture "remains in place."

At the time the plant was announced, it was unclear how many local workers it might employ, with a provincial government spokesperson telling CBC Hamilton there was no guarantee for Canadian jobs. 

In a November news release, Asahi Kasei said it had started local hiring, "with more than five employees supporting the project's startup phase." It said the company "is committed to local engagement and economic growth and has begun earthworks using provincial companies and contractors."

In an email to CBC Hamilton Tuesday, OKeefe said that the initial phase of the project will create "more than 300 jobs." 

Although the North American EV market has slowed down, OKeefe said, the company is committed to increasing capacity and creating jobs to meet future demand. "While we can't share exact numbers at this stage, we will continue working with community partners to identify qualified local talent."