The Japanese government provides huge subsidies to some automakers for electric vehicle battery production

On September 6 local time, Japanese Minister of Economy, Trade and Industry Yasutoshi Nishimura announced at a press conference after the cabinet meeting that the Japanese government will provide subsidies of up to 347.9 billion yen for companies such as Toyota Motor and Nissan Motor to produce batteries for electric vehicles. It is reported that the subsidy amount accounts for about one-third of the total investment of each company of 1.007 trillion yen.

The Japanese government plans to increase Japan's domestic battery production capacity by 1.5 times through this subsidy. This measure covers multiple projects, including supporting the investments of Toyota and Nissan, as well as a joint project in which Panasonic Holdings' energy division cooperates with automakers Subaru and Mazda Motor respectively. For example, Toyota will invest a total of about 245 billion yen with its battery subsidiary to increase the production capacity of solid-state and prismatic batteries. It also plans to build battery factories in Hyogo Prefecture and Fukuoka Prefecture. Nissan has obtained government certification for its plan to produce lithium iron phosphate batteries, with the goal of reaching an annual domestic production capacity of 5 gigawatt-hours. Panasonic Energy Division will cooperate with Subaru and Mazda to build factories and supply batteries in Gunma Prefecture, Osaka Prefecture and other places.

Previously, the Japanese government has provided subsidies to the country's power batteries many times. It has designated batteries as materials of "special importance for economic security" and allocated budgets to promote the development of the battery industry. This large-scale subsidy aims to enhance Japan's battery supply chain and the competitiveness of the battery industry to cope with the rapid development of the global electric vehicle market. Against the background of the increasingly accelerated development of electric vehicles in the world, it consolidates the position of Japan's domestic automobile industry. This decision also reflects the Japanese government's determination to promote the development of electric vehicles and achieve decarbonization goals. The subsequent development of relevant automakers and their impact on the Japanese electric vehicle market are highly concerned.