01:58 PM EDT, 11/01/2024 (MT Newswires) -- Honda Motor ( HMC ) and Asahi Kasei said Friday they signed a shareholders' agreement to convert an Asahi Kasei unit in Canada into a joint venture company for the production of lithium-ion battery separators.

Asahi Kasei's E-Materials Canada unit will be converted into a joint venture to be tentatively called Asahi Kasei Honda Battery Separator, the companies said.

Under the terms of the agreement, Honda Canada will acquire a 25% stake by subscribing to new shares that E-Materials will issue through a third-party allotment, the companies said.

The companies said Honda ( HMC ) will invest a total of about 417 million Canadian dollars ($300 million) in the joint venture, which they intend to establish and commence early next year.

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