Asahi Kasei Corporation (Asahi Kasei) and Honda Motor Co., Ltd. (Honda) announced today that the two companies have signed a shareholders’ agreement to convert an existing

Asahi Kasei subsidiary in Canada into a joint venture company. This agreement was reached as a result of continued discussions on collaboration for the production of lithium-ion battery separators in Canada based on the basic agreement the two companies announced on April 25, 2024.

Configuration for separator production in North America The two companies plan to convert E-Materials Canada Corporation (E-Materials), a wholly owned subsidiary of an Asahi Kasei subsidiary in Canada, into a joint venture between Asahi Kasei and Honda to be renamed Asahi Kasei Honda Battery Separator Corporation (tentative name). This will be based on Honda Canada Inc., a Honda subsidiary in Canada, acquiring a 25% stake by subscribing to new shares to be issued by E-Materials through a third-party allotment. Honda will invest a total of approximately C$417 million (approximately US$300 million) combining the subscription of new shares and other investment in this joint venture. The two companies will combine each other’s strengths, such as high value-added material technologies and electrification technologies, to produce high-quality separators to be utilized for lithium-ion batteries that will accelerate the realization of high-performance electrified vehicles. The two companies plan to establish and start the operation of the joint venture company in early 2025, subject to obtaining permits and approvals from relevant authorities. Ryu Taniguchi, President & Representative Director at Asahi Kasei Battery Separator Corp. comments: “At the beginning of October, we launched Asahi Kasei Battery Separator as a new company for the Hipore™ separator business to achieve more nimble management for this essential component of lithium-ion batteries. I am confident that we can continue to leverage the technology and experience gained with Hipore™ as well as our global network and diverse personnel to realize innovations in batteries for the future of energy storage. As Honda strives toward the goal of carbon neutrality by 2050, it is building a comprehensive electric vehicle value chain in Canada, where it has a history of conducting business for more than 50 years. Our partnership will not only establish a stable supply of separators in North America, together we will enhance battery performance and durability to advance the energy transition through electric vehicles, making an important contribution to sustainability.” About the joint venture company (tentative) Company name: Asahi Kasei Honda Battery Separator Corporation (tentative)Location: Port Colborne, Ontario, Canada Capital: Approximately C$240 million Investment ratio: 75% Asahi Kasei Battery Separator Canada Corporation 25% Honda Canada Inc. ■Outline of the investment by the joint venture company (tentative)

Plant overview:Integrated plant for the base film manufacturing
and coating of Hipore™ lithium-ion battery separator
Total investment amount:180 billion yen (with an assumed exchange rate of 1 USD=145 yen)
Production capacity:Approximately 700 million m2 per year (as coated film)
Start of operations:Commercial start-up scheduled in 2027