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Japan approves $2.4bn for EV battery projects

  • : Battery materials, Metals
  • 24/09/06

The Japanese government has approved to fund a maximum of ¥347.9bn ($2.4bn) for electric vehicle (EV) battery investments, in a bid to build out 150 GWh/yr of domestic output capacity by 2030.

A total of 12 projects will be subsidised, according to the ministry of trade and industry (Meti) on 6 September. This includes lithium-ion (Li-ion) battery cell production by a consortium of battery producer Panasonic and auto manufacturer Subaru (see table).

Around ¥326bn will be allocated for Li-ion battery production, including lithium iron phosphate (LFP) batteries. Some ¥17bn for raw material production, such as electrolyte and ¥5bn for manufacturing equipment, will be financed, Meti said.

The funding is part of Meti's wider battery strategy that aims to build out 150 GWh/yr of battery production capacity domestically by 2030. The projects being subsidised are expected to lift total capacity to 120 GWh/yr from 85 GWh/yr currently once they begin operations, a Meti official said.

To achieve 150 GWh/yr target, the country needs to secure 100,000 t/yr of lithium, 90,000 t/yr of nickel, 150,000 t/yr of graphite, 20,000 t/yr of cobalt and 20,000 t/yr of manganese, according to Meti.

The battery strategy is part of pricing policy across industries based on Japan's Green Transformation Initiative, a policy to promote decarbonisation. Japan by 2030 aims to set a battery pack price for EVs at ¥10,000/kWh or less to make EV prices competitive with gasoline cars, and for storage batteries for industrial facilities at ¥60,000/kWh. Domestic battery production will be an essential factor to meet those targets by reducing cost.

Meti's battery strategy also aims to reduce foreign dependency for the battery supply chain, in line with the country's economic security law that designated batteries a critical resource in December 2022.

Japan EV battery projects with subsidy
Project ownerProductCapacity (GWh/yr) ****Project cost (¥bn)Government funds (¥bn)Expected year to start supplying
Panasonic/Subarulithium-ion battery cell16.0463.0156.4Aug '28
Panasonic/Mazdalithium-ion battery cell6.583.328.3July '25
NissanLFP (lithium-iron phosphate)5.0153.355.7July '28
Toyota/PPES*/PEVE**Next generation battery/ASSB***9/n.a245.085.6Nov '26
Nippon ShokubaiElectrolyte21.437.512.5July '28
ToagoseiBinder 142.03.81.3Oct '26
artience/Toyocolora) Conductive agents, b)carbon nano-tubea) for cathode 40, for anode 17, b) 1208.82.9a) Dec '27 (cathode), Sep '26 (anode), b) Jan '27
KagaExplosion-proof cover cap3.10.60.2Oct '25
Ricoh/Seibu GikenBattery manufacturing equipment3.04.72.3Sep '27
Kyoto SeisakushoBattery manufacturing equipment21.05.41.9Jul '26
Soft Energy ControlsBattery manufacturing equipment18.00.80.4Apr '25
Marui SangyoBattery manufacturing equipment8.00.80.4Apr '26
* PEVE=Primearth EV Energy **PPES=Prime Planet Energy & Solutions *** All-solid-state-battery **** battery equivalent for raw material and battery manufacturing equipment

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