Japan is intensifying its efforts to bolster electric vehicle (EV) battery production with an investment of $2.4 billion in subsidies to strengthen the nation’s battery supply chain. The government has earmarked support for 12 projects focusing on storage batteries and related components, aiming to expand Japan’s annual battery production capacity by 50% to 120 gigawatt-hours (GWh), up from the current 80 GWh.
Minister of Economy, Trade and Industry, Ken Saito, emphasised that this initiative is designed to improve Japan’s battery industry’s global competitiveness. Major automotive and battery manufacturers, including Toyota, Nissan, Panasonic, Subaru, and Mazda, are involved in these efforts, which reflect Japan’s strategic push to increase domestic battery production.
Toyota will invest approximately 245 billion yen through its subsidiaries, Prime Planet Energy & Solutions and Primearth EV Energy, to enhance production capacity for solid-state and prismatic batteries by 9 GWh. These batteries are expected to be available from November 2026, with new plants planned in Hyogo and Fukuoka prefectures.
Nissan is focusing on lithium-iron-phosphate batteries, aiming for 5 GWh of annual production capacity by 2028. The government is supporting this initiative with 55.5 billion yen in subsidies.
Panasonic Energy, in collaboration with Subaru, will build a plant in Gunma Prefecture, targeting 16 GWh in annual production capacity by 2030, and supply batteries to Subaru and Mazda from 2027. Additionally, Panasonic plans to produce batteries for Mazda at its Osaka facilities, further expanding its role in the EV battery market.
This significant government support highlights Japan’s ambition to lead in the EV transition and secure its position in the competitive global battery supply chain.
