Asahi Kasei is delaying the launch of its planned EV-battery materials plant in Colborne, Ont., to 2029 or later, reflecting shifting timelines for electric-vehicle production in Canada, Nikkei Asia reported.

The Japanese supplier had originally targeted a mid-2027 start for the $1.7-billion facility, which is designed to produce battery separators — a key component in lithium-ion batteries — with annual capacity of roughly 700 million square metres, enough to support about one million EVs. The project is already under construction.

The revised schedule follows a decision by Honda Motor, which holds a 25% stake in the project, to push back its own Ontario EV manufacturing plans, according to Nikkei. The automaker previously said it would delay the start of its plant by two years to 2028, prompting a reassessment of near-term demand.

Weaker orders from other customers amid a broader slowdown in EV adoption have also weighed on the outlook, according to Nikkei. As a result, Asahi Kasei now expects it will be difficult to proceed with the Canadian facility on its original timeline.

The company has sharply reduced its forecast for the North American EV market, now projecting about two million vehicles by 2030, down from an earlier estimate of eight million. It plans to scale its supply strategy accordingly.

In the interim, Asahi Kasei will serve North American customers by exporting battery separators from Japan, Nikkei reported. The company is also exploring opportunities tied to growing demand from AI data centres as a way to accelerate the Canadian project.

Meanwhile, a separate Asahi Kasei coating plant in the United States remains on track to begin operations in the first half of fiscal 2026, according to Nikkei.

Rendering: Invest Ontario