The Japanese government has announced it is providing subsidies, amounting to as much as $1.8 billion, to fund several storage battery and chip-related projects in the country.
This move which is part of the country's efforts to increase supply chain security of battery storage and promote green transformation was confirmed by the Japan Industry Minister Yasutoshi Nishimura on Friday.
Of the total investment, the government plans to allocate up to 184.6 billion yen ($1.36 billion) in subsidies for eight storage battery-related proposals, while up to $410 million will be given for two semiconductor-related projects, Nishimura told reporters.
One of the proposals that will receive subsidies is a plan by automaker Honda and GS Yuasa, a battery maker, to invest around 430 billion yen ($3.16 billion) in boosting storage battery production with the ministry providing up to 158.7 billion yen ($1.17 billion) in subsidies for the project.
Riding on the government incentive, Honda, GS Yuasa and Blue Energy, another battery maker, have announced plans to build a new plant that would target a production capacity of at least 20 gigawatt-hours and start production in April 2027 hitting mass production in October 2027.