Why should Japan invest in storage batteries?

Energy Security: Storage batteries are key to stabilizing Japan’s energy system. Given Japan’s limited natural resources and dependence on imports, combined with its vulnerability to natural disasters, investing in reliable and sustainable energy solutions is critical.

How big is Japan's battery storage capacity?

Rystad forecasts Japan's battery storage capacity could reach about 4 GW based on projects under construction, planned and awarded, which would require $6 billion in investment.

What happened to Japan's lithium-ion battery market?

From 2015 to 2020, Japan’s share in the automotive lithium-ion battery market plummeted from over 50% to just 21%, and in stationary lithium-ion batteries, it dropped from 27% to a mere 5.4%. This rapid decline is striking, especially given Japan’s near-monopoly in 2000 and the fact that domestic production actually increased during this period.

What is Japan's storage battery industry strategy?

The “Storage Battery Industry Strategy” document from METI sets out three key targets: Boost Domestic Manufacturing: Japan aims to ramp up its domestic production of automotive storage batteries to 100 GWh by 2030, with a long-term goal of reaching 150 GWh annually. This move highlights the potential for foreign companies to invest in Japan.

How big is Japan's energy storage capacity?

Global energy storage capacity was estimated to have reached 36,735MW by the end of 2022 and is forecasted to grow to 353,880MW by 2030. Japan had 1,671MW of capacity in 2022 and this is expected to rise to 10,074MW by 2030. Listed below are the five largest energy storage projects by capacity in Japan, according to GlobalData’s power database.

How much battery power does Japan have?

As of March, Japan had 0.23 GW of grid-connected BESS, according to METI. By comparison, China has 75 GW and the U.S. has installed nearly 26 GW of battery storage capacity, according to the Energy Institute.