In an effort to fortify its battery supply chain, Japan will increase its subsidies for the development of electric car batteries, promising as much as $2.4 billion in assistance for initiatives involving Toyota Motor and other significant corporations.

According to Minister of Economy, Trade and Industry Ken Saito, the government would provide up to 350 billion yen ($2.44 billion) in support for 12 projects involving storage batteries or related parts, materials, or production equipment.

The government's assistance included funding for Nissan Motor and Toyota investments, as well as cooperative initiatives that Panasonic Energy Unit would manage alongside Subaru and Mazda Motor.

The most recent assistance follows the government's June 2018 announcement of over $1 billion in subsidies for the development of storage batteries, with the first round of subsidies to be awarded in April 2023.

According to the industry ministry, Toyota will invest a total of around 245 billion yen with its battery subsidiaries Prime Planet Energy & Solutions and Primearth EV Energy to increase solid-state and prismatic battery production capacity by 9 GWh.

Toyota plans to begin battery deliveries in November 2026. The Yomiuri newspaper reports that the proposal calls for the construction of battery factories in the prefectures of Hyogo and Fukuoka.

In a joint announcement, Subaru and Panasonic's energy unit—which produces batteries for Tesla—announced that they will establish a factory in Gunma prefecture, north of Tokyo, to provide lithium-ion batteries on a cyclic basis starting in the 2028 fiscal year.

Starting in the 2027 fiscal year, Panasonic Energy will provide Subaru with these batteries manufactured at an Osaka prefecture facility the company stated. By 2030, a total investment of 463 billion yen would aim to achieve 16 gigawatt hours of yearly production capacity from the Gunma plant, with an additional 4 gigawatt hours coming from the Osaka facility.

(Sources: investing.com, reuters.com)