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Toyota to Receive ¥120 Billion Subsidy for EV Batteries

Yomiuri Shimbun file photo
Toyota Motor Corp. headquarters

The Economy, Trade and Industry Ministry will provide a subsidy of about ¥120 billion to Toyota Motor Corp. for its plan to domestically produce lithium-ion batteries for electric vehicles, a source close to the matter said Thursday.

With an eye to enhancing economic security, the subsidy is aimed at boosting production capacity for automotive batteries, which the ministry deems a “strategically indispensable sensitive technology.”

Toyota announced last August a plan to invest about ¥400 billion in the domestic production of automotive batteries.

With the subsidy, Toyota will expand battery production at a plant of its joint venture with Panasonic Corp. in Hyogo Prefecture, as well as at other locations. The automaker will establish a system that allows for stable battery procurement and the production of complete vehicles even if the battery supply chain is disrupted by an emergency such as a natural disaster.

The ministry announced in April a ¥158.7 billion grant to Honda Motor Co. and GS Yuasa International Ltd.’s automotive lithium-ion battery business.

According to SNE Research, Chinese manufacturers control more than 50% of the global market for automotive batteries, while Japan accounts for about 10%.