Japan invests in batteries for Mazda, Nissan, Subaru and Toyota EVs

The Japanese government has granted Mazda, Nissan, Subaru and Toyota a reputed ¥326 billion (£1.7bn) in subsidies to ramp up production of EV batteries.

Subaru received the largest investment, at ¥156.4bn (£834m), which will result in it building a joint-venture battery factory with Japanese electronics giant Panasonic.

This plant will open in the 2028-2029 financial year and ramp up to 16GWh of annual output by 2030. 

Mazda will also use Panasonic cells, taking between 6.5GWh and 10GWh annually from 2027.

The companies said that Mazda will take charge of assembling the cells into packs, using them in a new EV based on its first dedicated EV platform.

Mazda’s subsidy was the smallest of those granted by the Japanese government, at ¥28.3bn (£151m).

Nissan, meanwhile, was granted ¥55.7bn (£297m) to begin production of lithium-ferrous-phosphate (LFP) batteries for use in electric kei cars in 2028.

This will help the company to “provide more affordable electric vehicles”, president and CEO Makoto Uchida said.

Toyota’s subsidy was undisclosed, but its plans prove most ambitious, it having been approved to begin production of solid-state batteries and “next-generation” lithium ion cells from 2026.

Unlike its compatriots, Toyota didn't explicitly state whether the batteries would be destined for EVs, instead stating that it “seeks to improve the marketability of electrified vehicles and achieve carbon neutrality through a multi-pathway approach”.

This suggests its new cells could be bound for hybrids and hydrogen fuel cell cars (FCEVs) as well as EVs.

The investments in electric cars come as Japan’s industry also explores several means of decarbonising internal combustion engines.

Toyota, Mazda and Subaru earlier this year agreed to what Toyota chief Koji Sato dubbed a “friendly competition”, each committing to designing all-new engines to take advantage of carbon-neutral ICE fuels. 

Nissan has meanwhile agreed an alliance with Honda and Mitsubishi to co-develop a new EV platform, aimed at accelerating development times and cutting costs.