December 4, 2025: Asahi Kasei has announced the sale of its Daramic lead battery separator business to Kingswood Capital Management for an undisclosed sum.
Asahi confirmed on December 2 that it had divested Daramic effective December 1, adding that the effect on its consolidated financial results for fiscal 2025 was “immaterial”.
Kingswood, which focuses on “win-win partnerships with strong underlying businesses”, said it is currently investing out of a $1.5 billion fund targeting opportunities in middle-market companies.
Asahi said it will now focus on strengthening its position in the battery separator market through continued investment in its Hipore wet-process lithium ion technology, with a focus on the automotive sectors in North America, Japan, and Korea.
Hideyuki Yamagishi, primary executive officer of Asahi and president of the group’s material sector, said: “As we enter a new era for our company, it is critical that we align our resources with areas that will drive future growth.
“This divestiture represents a strategic step that allows Asahi Kasei to evolve its capabilities with high-potential initiatives, such as strengthening our electronics business and expanding our lithium ion battery separator business in North America, both key drivers of profit growth.”
Asahi acquired Daramic through the purchase of Polypore International in August 2015, gaining ownership of the lead battery separator business and the Celgard dry-process lithium ion battery separator unit.
As Batteries International reported at that time Polypore, a US battery separator firm, was split into two and sold for $3.2 billion. Asahi acquired its energy storage business and US-based 3M would get its separations media segment.
Asahi’s sale of Daramic was announced just weeks after the firm said it was licensing its novel electrolyte technology to Germany-based EAS Batteries for the launch of an ultra-high-power battery cell.
The acetonitrile-containing electrolyte tech will be used by EAS, which is owned by European lead battery major Monbat, to develop novel ultra-high-power lithium ion cells using LFP cathodes.
Last year, Asahi announced the successful proof of concept for lithium ion batteries using its proprietary high ionic conductive electrolyte containing acetonitrile. This technological breakthrough enables increased power output at low temperatures and improved durability at high temperatures, the company said.
Since then, under Asahi’s three-year medium-term management plan ‘Trailblaze Together’, the firm said it is improving capital efficiency and accelerating earnings by converting past growth investments into tangible returns.
Asahi is also implementing structural reforms that channel resources to its key growth areas, which it said include electronics and pharmaceuticals.
