9 Japan Companies Team Up on EV Battery Production; Seek to Streamline Process to Compete With China

The Yomiuri Shimbun

7:00 JST, December 19, 2025

Nine Japanese companies will establish a joint venture to build a low-cost, high-efficiency EV battery production system as early as April 2026, The Yomiuri Shimbun has learned. Participants include Hitachi, Ltd., Ricoh Co. and JTEKT Corp., which is affiliated with Toyota Motor Corp.

Specialized equipment is used for each step of producing EV batteries, including the processing of raw materials and pack assembly. The current process requires coordination with more than 50 related companies and typically takes four to six years from design to the actual start of the production.

The joint venture aims to create a new production model that will compress this timeframe to two to three years. It will allow Japan to better compete with low-cost rivals from China and South Korea and expand its market share.

To achieve this goal, the joint venture will create a basic model of a production line that integrates such elements as facilities, production equipment and transport machinery. It also aims to reduce costs for air-conditioning and other components.

Some of the knowledge gained from the new production model will be shared with the Battery Association for Supply Chain, which comprises about 250 domestic battery-related companies, so as to enhance to the entire industry.

The new company is expected to start creating a model around 2028, with an estimated project cost of about ¥18 billion.

Stable production of rechargeable batteries is crucial for economic security, given the rising global demand. The new venture expects national subsidies to cover part of its project costs.

Japanese makers held a 51.7% global share of the automotive battery market in 2015, according to the Economy, Trade and Industry Ministry. However, fierce price competition has led to China holding a 64.1% share and South Korea a 21% share in 2023. Japan only had a 7.6%.

Japan has set a target to restore its global share to 20% by 2030 by expanding its production in and outside Japan.