Jump to content
Create New...
  • G. David Felt
    G. David Felt

    Japan to Fund Toyota Solid-State Battery Development with $853 Million Subsidy

      The Japanese government recognizing that Japan has less than 10% of the global battery cell market, will fund Toyota R&D to help capture market share.

    According to the news story from NIKKEI Asia The Ministry of Economy, Trade and Industry has designated battery cells as a crucial part of Japan's economic security and has secured $330 Billion Yen in supplementary fiscal budget to support the Japanese sector.

    Beneficiary of this is that $120 Billion Yen or $853 million dollars will go to Toyota Motor Corporation to support their R&D in developing the 900-mile solid-state battery that Toyota talked about in their revolutionization of the auto.

    Toyota New Technology to Revolutionize the Future of Autos - Toyota - Cheers & Gears (cheersandgears.com)

    This financial aid comes as China, Korea, Europe and the U.S. governments have decided to invest in R&D to support home grown battery production. Japan currently holds less than 10% of the automotive battery industry with the bulk of this being Tesla supplier Panasonic, while Chinese suppliers' control over 50% and the remaining 30ish percent is from Korea, Europe and the U.S.

    Toyota has had to commit yen to yen to qualify for this state aid. Toyota has stated that this subsidy will go into expanding the Prime Planet Energy & Solutions, a joint battery venture with Panasonic, Japan's leading EV battery manufacturer.

    Toyota says that the battery R&D will allow them to increase their range on all Hybrids almost immediately as well as develop class leadership in EV battery packs for EV production in 2026 or 2027.

    The Ministry also stated that $160 billion yen will go to Honda Motor and GY Yuasa for their battery investment plans. 

    These investments will cover about 1/3rd of the capital investments for building the new assembly lines and about half of the R&D costs.

    Japan once led the automotive battery industry with over 50% market share at the end of 2015 but have now been replaced by Chinese and Korean companies that have greater production and supply for the EV segment. Japan currently relies on raw materials from China and finished cells from Korea to build their battery cells for use in EVs.

    China leads the world in lithium iron phosphate (LFP) batteries. Toyota is working on Bipolar LFP technology, which is seen as a alternative to the Chinese cells.

    The U.S. Inflation Reduction Act signed into law last year includes incentives aimed at bolstering the EV supply chain in the U.S. which is seeing massive investment from South Korea with global Automakers as they ramp up to take advantage of the IRA benefits.

    This has Japan trailing Korean, European and U.S. auto companies that have or are currently moving EV production to the U.S. to take advantage of these financial benefits.


    User Feedback

    Recommended Comments

    There are no comments to display.



    Join the conversation

    You can post now and register later. If you have an account, sign in now to post with your account.
    Note: Your post will require moderator approval before it will be visible.

    Guest
    Add a comment...

    ×   Pasted as rich text.   Paste as plain text instead

      Only 75 emoji are allowed.

    ×   Your link has been automatically embedded.   Display as a link instead

    ×   Your previous content has been restored.   Clear editor

    ×   You cannot paste images directly. Upload or insert images from URL.


  • google-news-icon.png



  • google-news-icon.png

  • Subscribe to Cheers & Gears

    Cheers and Gears Logo

    Since 2001 we've brought you real content and honest opinions, not AI-generated stuff with no feeling or opinions influenced by the manufacturers.

    Please consider subscribing. Subscriptions can be as little as $1.75 a month, and a paid subscription drops most ads.*
     

    You can view subscription options here.

    *a very limited number of ads contain special coupon deals for our members and will show

  • Posts

    • We'll see if Toyota is first, Mercedes already has solid state on the road in prototype form.  I would imagine they want that ready for the next generation S-class EV that replaces the EQS.  And usually the S-class gets the technology first.  E-class EV is due out in 2027, I don't know if they would be ready that fast, and even if so, is this expensive tech that starts on S-class and 10 years later ends up on a regular car. From their media release: Safer, lighter, more efficient and 25 percent longer range in the first vehicle: solid-state cell chemistry delivers higher energy density and weight reduction, with improved driving efficiency and cell safety  Mercedes-Benz, together with Mercedes AMG High Performance Powertrains (HPP) based in Brixworth UK, developed and patented new innovative solid-state battery pack  Mercedes-Benz integrated solid-state battery, with cells from U.S.-based solid-state battery leader Factorial Energy, into slightly modified EQS Sedan  Road tests with new solid-state battery in "621 mile" EQS development car started in February 2025
    • I suspect with Hyundai having their solid-state battery plant started for testing of the battery packs that Toyota is going to have to really spend money to catch up to the Koreans. Hyundai to launch all-solid-state EV battery pilot line next month Hyundai Set to Launch All-Solid-State Battery Production - Batteries Daily Hyundai Solid-State Battery Pilot Line Starts Production In March Hyundai starts solid-state battery production in March Lots of stories covering it, 
    • Hard to get the actual Chinese press release here, but this is their global site. News Center-BYD
    • I actually posted this when BYD rolled out their 3rd generation platform of 1000V EVs with 1000V 5 min charging.  BYD's 1,000V Super E-Platform offers charging 400km in 5 minutes BYD has an American presence here in building other things than EVs. PRESS RELEASE - Technological Innovations for a Better Life | BYD USA Commercial Buses School Buses Trucks Forklifts Energy Skyrail Autos
  • Who's Online (See full list)

    • There are no registered users currently online
  • My Clubs

×
×
  • Create New...

Hey there, we noticed you're using an ad-blocker. We're a small site that is supported by ads or subscriptions. We rely on these to pay for server costs and vehicle reviews.  Please consider whitelisting us in your ad-blocker, or if you really like what you see, you can pick up one of our subscriptions for just $1.75 a month or $15 a year. It may not seem like a lot, but it goes a long way to help support real, honest content, that isn't generated by an AI bot.

See you out there.

Drew
Editor-in-Chief

Write what you are looking for and press enter or click the search icon to begin your search