Japan has announced a significant $2.4 billion subsidy package aimed at enhancing its electric vehicle (EV) battery production capabilities, supporting major initiatives from leading companies like Toyota, Nissan, and Panasonic. This investment seeks to bolster Japan's battery supply chain and elevate its competitiveness in the rapidly growing global EV market.

The Japanese government plans to fund 12 projects focused on storage batteries, components, materials, and production equipment, according to Minister of Economy, Trade, and Industry Ken Saito. The objective is to boost Japan's annual battery production capacity by 50%, raising it from 80 gigawatt-hours (GWh) to 120 GWh, thereby reinforcing the nation's presence in the EV industry.

This latest subsidy package follows a previous $1 billion investment from June 2023, as Japan intensifies efforts to strengthen its EV battery industry, reduce dependence on foreign suppliers, and secure a leading role in the global electric vehicle market.