Japanese multinational corporation, Asahi Kasei, is set to increase its investment in lithium-ion battery (LIB) separators to meet the burgeoning demand from the electric vehicle (EV) market, particularly in North America. The company plans to invest ¥40 billion (€248 million) to expand its coating capacity to approximately 700 million m/year by the first half of fiscal year 2026.
The expansion will take place across the company's facilities in Charlotte, North Carolina; Hyuga, Miyazaki in Japan; and Pyeongtaek, Gyeonggi in South Korea. This move is a key component of Asahi Kasei's GG10 strategy, aimed at strengthening their supply infrastructure amid escalating EV demand.
The company's new coating equipment will be used for Hipore lithium-ion battery separators with a polyolefin base film and added coatings. With this increased production capacity, Asahi Kasei aims to supply durable separators for automotive use in batteries that could power up to 1.7 million EVs.
Hiroyoshi Matsuyama, the Senior Executive Officer of the Environmental Solutions Strategic Business Unit at Asahi Kasei, emphasized the significance of this expansion for their growth strategy. He pointed out that this strategic move is instrumental in bolstering LIB supply chains through greenfield sites.
InvestingPro Insights
Delving into the InvestingPro data, it's clear that Asahi Kasei is a significant player in the Chemicals industry. With a market capitalization of $8425.21 million and a revenue of $18761.02 million as of Q1 2024, the corporation's financial strength is evident. Despite a downturn in profitability over the last twelve months, the company has managed to maintain a consistent dividend payment for 32 consecutive years, demonstrating a commitment to shareholder value.
Two InvestingPro tips particularly stand out in relation to the article. Firstly, Asahi Kasei's stock generally trades with low price volatility, which could be an attractive factor for investors seeking stability amidst the company's strategic expansion. Secondly, the company is currently trading near its 52-week low, potentially offering a valuable entry point for investors banking on the success of its lithium-ion battery separator production expansion.
With over 3407 additional tips available on InvestingPro, investors can further delve into the company's performance and potential. These insights can provide a deeper understanding of Asahi Kasei's strategic moves and potential return on investment.
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