Toyota to Receive US$840 Million Subsidy for Domestic EV Battery Push

Japan’s industry ministry said it will provide up to US$840 million in subsidies to the country’s biggest automaker Toyota to invest in leading-edge electric vehicle batteries (EV), within Japan.

The government support, in line with the country’s aim of ensuring economic security by promoting the development of key technologies such as batteries and semiconductors, follows an earlier decision in April to provide a subsidy of around US$1.1 billion for an EV battery manufacturing project by Honda Motor Co and GS Yuasa Corp.

The latest government support is part of a US$898 million package to be extended to a total of seven projects to develop and invest in battery parts and materials, also including those by battery manufacturers, the ministry said.

At a press conference for the announcement, Economy, Trade and Industry Minister Yasutoshi Nishimura said: “I hope large-scale investments by Toyota and others will significantly strengthen our country’s battery supply chain” amid intensified global competition for batteries.”

In the face of criticism of being an industry laggard on its climate change commitments, Toyota President Koji Sato recently said the company must play catchup after falling behind in the EV sector.

Toyota plans to expand its all-electric vehicle lineup by launching up to 10 new models and selling 1.5 million EVs annually by 2026.