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 owner | Product | Capacity (GWh/yr) **** | Project cost (¥bn) | Government funds (¥bn) | Expected year to start supplying |
| Panasonic/Subaru | lithium-ion battery cell | 16.0 | 463.0 | 156.4 | Aug '28 |
| Panasonic/Mazda | lithium-ion battery cell | 6.5 | 83.3 | 28.3 | July '25 |
| Nissan | LFP (lithium-iron phosphate) | 5.0 | 153.3 | 55.7 | July '28 |
| Toyota/PPES*/PEVE** | Next generation battery/ASSB*** | 9/n.a | 245.0 | 85.6 | Nov '26 |
| Nippon Shokubai | Electrolyte | 21.4 | 37.5 | 12.5 | July '28 |
| Toagosei | Binder | 142.0 | 3.8 | 1.3 | Oct '26 |
| artience/Toyocolor | a) Conductive agents, b)carbon nano-tube | a) for cathode 40, for anode 17, b) 120 | 8.8 | 2.9 | a) Dec '27 (cathode), Sep '26 (anode), b) Jan '27 |
| Kaga | Explosion-proof cover cap | 3.1 | 0.6 | 0.2 | Oct '25 |
| Ricoh/Seibu Giken | Battery manufacturing equipment | 3.0 | 4.7 | 2.3 | Sep '27 |
| Kyoto Seisakusho | Battery manufacturing equipment | 21.0 | 5.4 | 1.9 | Jul '26 |
| Soft Energy Controls | Battery manufacturing equipment | 18.0 | 0.8 | 0.4 | Apr '25 |
| Marui Sangyo | Battery manufacturing equipment | 8.0 | 0.8 | 0.4 | Apr '26 |
| * PEVE=Primearth EV Energy **PPES=Prime Planet Energy & Solutions *** All-solid-state-battery **** battery equivalent for raw material and battery manufacturing equipment | |||||
| Source: Meti | |||||
