Japanese Government and Companies to Invest 9.3 Trillion Won in Electric Vehicle Batteries by 2028

Battery Production Capacity Increased by 1.5 Times

The Japanese government and major automobile and battery companies plan to invest about 1 trillion yen (approximately 9.3154 trillion KRW) by 2028 to strengthen electric vehicle battery production capacity.

According to the Nihon Keizai Shimbun (Nikkei) on the 6th, four automobile companies?Toyota Motor Corporation, Nissan Motor Corporation, Mazda, and Subaru?and battery manufacturers such as Panasonic plan to invest about 1 trillion yen by 2028 to enhance electric vehicle battery production capabilities within Japan.

Accordingly, battery production in Japan will increase by 50%, from the current 80 gigawatt-hours (GWh) to 120 GWh. The Ministry of Economy, Trade and Industry plans to expand production capacity to 150 GWh by 2030. It is expected to soon announce a subsidy plan, with support of up to 350 billion yen (approximately 3.2604 trillion KRW), Nikkei reported. The Japanese government provides subsidies for strategic materials such as semiconductors and batteries under the Economic Security Law.

Nikkei explained, "This plan will increase Japan's battery production capacity by 1.5 times," adding, "The government and private sector are jointly strengthening the supply capacity of strategic materials."

Toyota will increase lithium-ion battery production together with its two battery subsidiaries. It plans to establish a new electric vehicle battery factory in Fukuoka Prefecture, aiming to start operations by the end of 2028. The total investment amount, including the Hyogo Prefecture factory, will reach about 250 billion yen (approximately 2.3289 trillion KRW).

In particular, the new factory in Fukuoka Prefecture is expected to become a battery supply hub for the nearby Lexus assembly plant. Toyota plans to increase global electric vehicle sales to 3.5 million units by 2030.

Nissan plans to manufacture lithium iron phosphate (LFP) batteries for vehicles in Fukuoka Prefecture. The total investment amount is about 150 billion yen (approximately 1.3973 trillion KRW).

Panasonic, Subaru, and Mazda will cooperate to produce batteries in Gunma Prefecture and Osaka. They plan to manufacture key lithium-ion battery components for Subaru and Mazda.