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Japan considers USD 24 Bn investment to reinforce the battery sector

Date: September 01, 2022 Meghna Singh Meghna Singh
Japan considers USD 24 Bn investment to reinforce the battery sector 
Amid the rising demand for sustainability, Japan reportedly needs to invest more than USD 24 billion from both the public and private sectors to build a competitive production base for batteries used in products like energy storage and electric cars (EVs).



Based on the statement of the Ministry of Economy, Trade, and Industry, an expert group charged with developing battery strategy also set a goal for ensuring 30,000 qualified people for battery manufacturing and supply chains by 2030.



Apparently, the final plan is crucial to Japan's efforts for reviving its battery industry as the competitors from South Korea and China which are backed by the government, can gain market share in lithium-ion batteries at the cost of Japanese companies.



The panel had previously established goals for domestic EVs and the energy storage battery manufacturing capacity to reach 150-gigawatt hours (GWh) by 2030 and for the Japanese manufacturers to reach 600 GWh globally. Additionally, it has urged the complete commercialization of all-solid-state batteries by 2030.



The ministry also announced that government assistance will increase for the Japanese companies investing in the mining of minerals used in batteries and the partnerships with resource-rich nations including Australia, Africa, and South America would be strengthened.



It is also anticipated that, in the coming decades, the demand for minerals like nickel, lithium, and cobalt would rise dramatically as they turn necessary for environmentally friendly technologies.



Reportedly, the government estimates the requirement of around 600,000 tons of graphite, 380,000 tons of lithium, 60,000 tons of cobalt, 310,000 tons of nickel and 50,000 tons of manganese to produce 600 GWh of batteries annually in 2030.



The ministry also hinted at the importance of batteries for the electrification of the mobile devices and for increasing the use of renewable energy, which is essential for the government's goal of becoming carbon neutral by 2050.



For the uninitiated, Japan also recently announced the hiring and over 3.4 trillion yen (USD 24.55 billion) in investment goals in its April plans.



Source Credit:



https://auto.economictimes.indiatimes.com/news/auto-components/japan-calls-for-24-bln-investment-to-boost-battery-competitiveness/93916356#:~:text=TOKYO%3A%20Japan%20needs%20over%20%2424,industry%20ministry%20said%20on%20Wednesday

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Meghna Singh

An English Literature graduate, Meghna Singh ventured into the profession of content development to incorporate her knack for writing articles across verticals including technology, healthcare, business, and alike for News Origins and Newsorigins. She has also completed her MBA in Tourism and worked as a content creator in the field of product development.