Refer Report
Toyota Motor logo. Reuters-Yonhap News
Following semiconductors, Japan is also pushing to strengthen its domestic production capacity in the electric vehicle (EV) battery sector through public-private cooperation. As the automobile industry is being shaken to the point where even Volkswagen, the world’s second-largest automaker, is considering closing down its production plants due to the rapid growth of Chinese EV companies, it is interpreted that Japan is also taking steps to prepare countermeasures.
According to the Nihon Keizai Shimbun and Yomiuri Shimbun on the 6th, four automakers, including Toyota Motor, Nissan Motor, Mazda, and Subaru, and battery companies are planning to invest about 1 trillion yen (about 9.3 trillion won) by 2028 to strengthen mass production of EV batteries in Japan.
About one-third of the total investment comes from the Japanese government in subsidies.
Nikkei quoted multiple sources as saying, “The total subsidy is expected to reach 350 billion yen.”
Japan is implementing a policy of subsidizing important materials such as semiconductors and batteries based on the Economic Security Act.
With this investment, Japan’s battery production capacity will increase by 50% from the current level to 120 GWh (gigawatt hours) as the mass production system is strengthened.
The Japanese government aims to increase domestic battery production capacity to 150 GWh by 2030.
Looking at the investment plans by company, Toyota plans to invest approximately 250 billion yen together with its battery subsidiary to build a new factory in Fukuoka Prefecture, aiming for operation in November 2028.
Nissan will invest approximately 150 billion yen to build a new lithium iron phosphate (LFP) battery plant in Fukuoka Prefecture, with production set to begin in July 2028.
Mazda and Subaru plan to jointly invest with Panasonic. Subaru-specific batteries will be produced in Gunma Prefecture starting in August 2028, while Mazda-specific batteries will secure a manufacturing line at Panasonic’s Osaka plant and begin production in July of next year.
Previously, the Japanese government decided to provide subsidies of about 160 billion yen to a joint venture factory between Honda and Japanese battery company GS Yuasa in the battery sector, and about 120 billion yen to Toyota.
Source: Korean