Japan’s major automakers, including Toyota, Nissan, Subaru, and Mazda, are set to invest ¥1 trillion ($7 billion) to boost electric vehicle (EV) battery production by 2028. The Japanese government will support this initiative with ¥350 billion ($2.4 billion) in subsidies, marking a key effort under Japan’s Economic Security Law to reduce reliance on foreign suppliers for critical materials like semiconductors and batteries.
The investment aims to increase Japan’s battery production capacity by 50%, reaching 120 GWh annually. This move is critical as Chinese and South Korean manufacturers currently dominate 90% of the global battery market. Japan’s goal is to further expand its domestic capacity to 150 GWh by 2030, enhancing resilience against global supply chain disruptions.
Toyota and Nissan are leading the charge, with Toyota planning a new plant in Fukuoka Prefecture, and Nissan targeting lithium iron phosphate (LFP) battery production. Mazda and Subaru will collaborate with Panasonic to secure dedicated production lines. These investments reflect Japan’s strategic focus on securing domestic battery production for national security and economic stability in the EV era.
