Japan will provide more subsidies for the production of electric vehicle batteries, pledging up to $2.4 billion, approximately 2.2 billion euros, to support related projects carried out by local automakers, such as Toyota. The plan is to strengthen its battery supply chain. The government will support 12 projects for storage batteries and those for the production of related components, materials or production equipment up to 350 billion yen, as detailed by Economy, Trade and Industry Minister Ken Saito.
Government’s plans for Toyota and others
“We hope these efforts will strengthen Japan’s battery supply chain and the competitiveness of the battery storage industry,” Saito said. The move will help expand the country’s annual battery production capacity by about 50 percent to 120 gigawatt-hours (GWh), from 80 GWh currently.” The support will also include investment support from Toyota, Nissan, joint projects that Panasonic would run with automakers Subaru, Mazda Motor.
Battery production and investments
The latest state support comes after the government pledged nearly $1 billion in subsidies for battery production in June last year and the first batch of subsidies in April 2023. Toyota will invest a total of about 245 billion yen with its battery subsidiaries Prime Planet Energy & Solutions and Primearth EV Energy to increase production capacity for solid-state and prismatic batteries by 9 GWh. Toyota will start supplying the batteries starting in November 2026. The plan calls for building battery factories in Hyogo and Fukuoka prefectures, according to the Yomiuri newspaper. Nissan will instead focus on a production plan for LFP, or lithium-iron-phosphate, batteries. The brand aims to bring the batteries to vehicles by 2028, with domestic production of 5 GWh per year.
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