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GS Yuasa and Honda to Open New Battery Plant in Japan

Leading Japanese companies GS Yuasa and Honda, and Blue Energy, a joint venture between the two companies, have announced that their plans for research, development and investment in mass production of lithium-ion batteries, primarily for BEVs (battery electric vehicles), have been approved by the Japanese Government.

The plan covers the mass production of high-capacity, high-power lithium-ion batteries, with a capacity of 20 GWh in Japan. Operations are expected to start in April 2027 and full-scale mass production in October 2027.

The total project cost is approximately 434.1 billion yen and the three companies will receive up to approximately 158.7 billion yen in subsidies from the Japanese Government.

Additionally, around 56.4 billion yen will be allocated as subsidies to support two semiconductor projects in Japan. “We have great expectations that this will lead to a stable supply of storage batteries and the promotion of GX (green transformation),” said Japanese Industry Minister Yasutoshi Nishimura.

Osamu Murao, President and CEO of GS Yuasa Co., Ltd. said, “In Vision 2035 announced in April, the BEV strategy will play a very important role in the future of GS Yuasa. With Honda, we will work together to strengthen our domestic manufacturing base for automotive and stationary products and make every effort to realise a carbon-neutral society.”

Toshihiro Sanbe, President and CEO of Honda Motor Co., Ltd. added, “Together with GS Yuasa, Honda has been working on battery development to contribute to the popularisation of BEVs in order to achieve carbon neutrality. By carrying out this project responsibly, we would like to meet a wide range of demand for batteries”. in Japan, which is expected to expand, centred on BEVs.”

Through initiatives in accordance with the Ministry of Economy, Trade and Industry’s “Supply Securing Plan for Storage Batteries”, GS Yuasa and Honda will respond to domestic demand for batteries, which is expected to expand in the future, and contribute to the green transformation, which shifts industrial and social structures to focus on clean energy.

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