Japan to Establish System for Sharing EV Battery Degradation Data, in Collaboration with Firms Including Toyota, Honda

The Yomiuri Shimbun

16:00 JST, September 10, 2025

The Japanese government will collaborate with domestic companies including Toyota Motor Corp. and Honda Motor Co. to establish a system for sharing data such as on the degradation status of EV batteries, it has been learned.

The initiative is aimed at promoting the more widespread use of used EVs and used batteries, thereby revitalizing the related markets. Batteries contain many critical minerals, including rare metals, so the government also aims to enhance economic security by curbing the outflow of used products overseas.

The Economy, Trade and Industry Ministry will support demonstration projects conducted mainly by battery maker Prime Planet Energy & Solutions Inc., a joint venture between Toyota and Panasonic Holdings Corp., and Revortex, which is under the umbrella of Sompo Holdings Inc. The ministry will then establish a system enabling cross-industry sharing of EV battery degradation status information held by Toyota, Honda and others within the current fiscal year.

The degradation status of an EV battery cannot be determined without knowing such things as its past usage and number of charge cycles. Since third parties cannot accurately assess the degradation status, resale prices of EVs tend to be low, leading to the current situation where approximately 80% of used EVs are transported overseas. Services like EV leasing and EV-specific insurance are also not expanding.

Toyota and Honda track the degradation status of each battery in their EVs. Making such information accessible to used car dealers, insurance companies and others could lead to the expansion of related markets.

Last fiscal year, the ministry supported a project in which used EVs are sold with guarantees on their future performance. It confirmed that used EVs with such guarantees sold for 20% higher than other used EVs, with 60% of them purchased domestically.