The upgrade is expected to boost the nation’s annual battery production capacity for storage by about 50%, reaching 120 gigawatt-hours (GWh) from the current 80 GWh.
Japan has committed to distributing $2.4 billion in subsidies to bolster electric vehicle battery manufacturing, supporting initiatives by Toyota Motors, among other firms aiming to enhance their battery supply chains. Ken Saito, Minister of Economy, Trade, and Industry, stated that the government will allocate approximately 350 billion yen ($2.44 billion) to aid 12 projects focused on storage batteries and their components, materials, or production equipment.
Minister Saito expressed hopes that these measures would reinforce the competitiveness of Japan’s storage battery supply chain and industry overall. This initiative is expected to boost Japan’s annual storage battery production capacity by 50%, reaching 120 gigawatt-hours (GWh), up from the current 80 GWh, as reported by Japanese media.
The subsidies will support investments by major automakers like Toyota and Nissan Motor and collaborative projects involving Panasonic Holdings’ energy division with Subaru and Mazda Motor, emphasized Saito.
This funding follows roughly $1 billion in subsidies granted last June for storage battery production, with the first phase scheduled to commence in April 2023. Toyota plans to invest about 245 billion yen through its battery subsidiaries to expand solid-state and prismatic battery production capacity by 9 GWh, with shipments expected to start in November 2026, as reported by the Yomiuri newspaper, which noted plans to build battery facilities in the prefectures of Hyogo and Fukuoka.
Additionally, Nissan has confirmed government approval for its proposal to produce lithium-iron-phosphate batteries, planning to use these in mini-vehicles from fiscal year 2028, with a projected domestic production capacity of 5 GWh per year and potential support up to 55.5 billion yen.
Moreover, Panasonic’s energy unit, a supplier for Tesla and Subaru, announced plans to establish a factory in Gunma prefecture to produce cylindrical lithium-ion batteries starting in the fiscal year 2028.
