Japan Battery Market Size, Share & Industry Analysis, By Type (Lithium-ion Battery, Lead-acid Battery, Nickel–cadmium Battery, Nickel-metal Hydride Battery, and Others), By State (Primary and Secondary), By Application (Electric Mobility, Energy Storage, Consumer Electronics, and Others), and Country Forecast, 2025-2032

The Japan battery market size was worth USD 12.35 billion in 2024 and is estimated to grow from USD 13.43 billion in 2025 to USD 25.65 billion in 2032. The market is projected to grow at a CAGR of 9.68% during the forecast period.

Battery demand in Japan is rising rapidly, driven by the convergence of energy transition goals, strong electric vehicle (EV) adoption, and the need for renewable energy storage. Japan aims to achieve carbon neutrality by 2050, which has accelerated its push toward clean mobility and grid decarbonization. The EV market is expanding, with sales of battery electric and plug-in hybrid vehicles in Japan crossing 85,000 units in 2023, a 46% increase from 2022, boosting demand for lithium-ion batteries.

Additionally, Japan is scaling up renewable energy, particularly solar and offshore wind, which requires advanced storage systems to balance intermittent supply. The Japanese government’s Green Growth Strategy targets 10% EV penetration by 2030 and deployment of 10 GW of battery storage capacity by 2030, further strengthening battery market demand. These factors are driving the battery market share in Japan. Also, Japan’s Ministry of Economy, Trade and Industry (METI) plays a central role in advancing the battery sector by promoting R&D, setting energy storage policies, and supporting domestic production to strengthen supply chain resilience.

Japan Battery Market Trends

Increased Demand for Battery Energy Storage Systems (BESS) to Drive Battery Market Growth

Japan is aggressively scaling its battery energy storage systems (BESS) to support its renewable energy goals. As of 2024, the country awarded over 1.37 GW of power capacity and more than 6.7 GWh of energy capacity through its Long-Term Decarbonization Power Source Auction. The nation aims to install 10 GW of energy storage capacity by 2030, aligning with efforts to increase renewables’ share of electricity from 27% to nearly 40%. Forecasts estimate Japan's cumulative energy storage, including future deployments, is estimated to rise from 2 GWh in 2023 to 40 GWh by 2030.

In addition, Sumitomo Corporation alone has planned to expand its U.S. battery storage from just 9 MW to 500 MW by March 2031. Also, HD Renewable Energy is a prominent developer and operator in the clean energy sector, specializing in extensive solar solutions and battery energy storage systems (BESS). In the 2025 auction, the company secured 300 MW (1.5 GWh) of BESS capacity, which constitutes approximately 20% of the total capacity awarded that year, and it aims to achieve a cumulative BESS capacity of 2.6 GW in Japan.

Japan Battery Market Growth Factors

Government Support & Strategic Investments in Electric Vehicles (EVs) to Boost Market Growth

The Japan battery market growth is driven by strong governmental backing and strategic investments, including a subsidy package of approximately USD 2.4 billion in 2024 aimed at increasing domestic EV battery production to 150 GWh per year by 2030 and supporting 12 major projects, among which is the collaboration between Panasonic and Subaru. Major automobile manufacturers such as Toyota, Nissan, and Panasonic are supporting this growth with a joint investment of around USD 6.97 billion to enhance storage battery capacity from 80 GWh to 120 GWh, bolstered by governmental assistance and aiming for a target of 150 GWh by 2030.

• Toyota is investing roughly USD 1.64 billion to add 9 GWh annual capacity for solid-state and prismatic batteries, with production slated to begin by November 2026

Japan Battery Market Restraints

Heavy Reliance on Foreign Supply Chains to Limit Market Growth

Japan is significantly dependent on China for essential battery materials, with Chinese companies dominating 60-70% of the global refinement of lithium and cobalt. This reliance, combined with fluctuating prices of raw materials, limits the resilience of Japan's industry. While Japan is actively seeking to diversify its resource sources, supported by its agreement with Australia’s Lynas to secure 30% of its domestic heavy rare earths, these measures are still inadequate to reduce its reliance on supply chains controlled by China.

• For instance, in late 2023, China implemented export permit regulations for both synthetic and natural graphite, referencing “national security” concerns. This action disrupted global supply chains and generated uncertainty for Japanese battery producers relying on consistent graphite imports for anode manufacturing.

Japan Battery Market Segmentation Analysis

By Type

Based on type, the market is divided into lithium-ion battery, lead-acid battery, nickel-cadmium battery, nickel-metal hydride, and others.

Among these, the lithium-ion battery accounted for the highest Japan battery market share, and it is anticipated to show the fastest growth during the forecast period. The increasing demand for lithium-ion batteries in Japan is primarily fueled by the growing adoption of electric vehicles (EVs), ambitious targets for renewable energy storage, and significant investments in domestic manufacturing. With Tokyo's requirement for all new houses to feature solar panels starting in 2025 and the upcoming implementation of Virtual Power Plant (VPP) programs in fiscal 2026, a considerable surge in demand for residential lithium-ion systems is anticipated.

• For instance, in 2024, solar power has emerged as Japan's predominant source of clean energy, with more than 3 million residential solar systems installed, paving the way for a substantial rise in the necessity for home battery storage solutions for lithium ion battery.

By State

Based on the state, the market is bifurcated into primary and secondary.

Among these, the secondary battery accounted for the highest market share, and it is anticipated to grow at a faster rate during the forecast period. Japan is experiencing an increasing demand for secondary batteries, driven by the growth of virtual power plant (VPP) initiatives, innovative sustainability measures, and a greater focus on renewable energy and resilience. Starting in fiscal 2026, Japan will introduce a specialized marketplace that allows homeowners with solar systems and batteries to sell excess energy back to the grid through VPPs, providing a significant motivation to adopt rechargeable (secondary) batteries.

• For instance, Japan is investing in advanced storage technologies that do not rely on lithium. For example, a vanadium flow battery facility established by Sumitomo Electric in Hokkaido currently supports 15 new local wind farms, helping to stabilize the grid, indicating that the demand for various rechargeable battery types is increasing.

By Application

Based on application, the market is segmented into electric mobility, energy storage, consumer electronics, and others. Among these, electric mobility accounted for the highest share, and it is anticipated to show the fastest growth.

Japan’s electric mobility industry is set for significant growth, fueled by significant industrial investments, rapidly falling costs for EVs and batteries, and a heightened demand for affordable electric vehicles. In particular, Honda launched an ambitious EV strategy in 2024, committing approximately USD 64.4 billion through the fiscal year 2031 to boost production of electric and fuel-cell vehicles, with a target for EVs to make up 40% of global sales and achieve an annual production of 2 million units by 2030.

List of Key Companies in Japan Battery Market

Panasonic, GS Yuasa Corporation, and Toshiba Corporation are the prominent players in the Japan battery industry. Panasonic maintains its status as Japan’s leading provider of lithium-ion batteries and has a significant presence in the global market. Additionally, Panasonic is crucial to achieving Japan’s goal of producing 150 GWh of EV batteries annually by 2030, particularly through its investment in a new gigafactory located in Gunma Prefecture, as part of a government-subsidized initiative to boost domestic battery production capacity is scheduled to begin operations in fiscal 2028.

GS Yuasa is one of Japan’s most prominent battery manufacturers, concentrating primarily on automotive and industrial uses. Its partnership with Mitsubishi, known as Lithium Energy Japan (LEJ), has been responsible for supplying batteries for the Mitsubishi i-MiEV, which is Japan’s first mass-produced electric vehicle. Toshiba is a significant player in the development of fast-charging and durable battery technologies, especially through its SCiB™ (Super Charge Ion Battery) platform.

The other companies with a considerable presence in the market include Samsung SDI, SK Innovation, Exide, and other small & medium-sized market players. These companies are making strategic moves, such as expanding their battery manufacturing capacities, collaborating with automakers to boost annual production costs, producing energy storage system battery packs, and others.

LIST OF KEY COMPANIES PROFILED

• CATL (China)
• LG Energy Solution (South Korea)
• Panasonic (Japan)
• BYD (China)
• Samsung SDI (South Korea)
• SK Innovation (South Korea)
• GS Yuasa Corporation (Japan)
• EVE Energy Co. LTD (China)
• Toshiba Corporation (Japan)
• Exide Industries Ltd (India)

KEY INDUSTRY DEVELOPMENTS

• September 2025: Japanese renewable energy firm Eurus Energy Holdings Corp announced that it has begun building a grid-connected battery energy storage system (BESS) with a capacity of 10-MW/27.42-MWh in Hokkaido. The project, named Eurus Hokkaido Ikeda Town Battery Park, will utilize lithium-ion batteries, and the facility is expected to start commercial operations in October 2027.
• June 2025: Mitsubishi Fuso Truck and Bus Corporation (MFTBC), Mitsubishi Motors, Ample, and Yamato Transport have revealed a multi-year pilot initiative set to commence in September 2025. This program will involve the introduction of over 150 electric commercial vehicles equipped with batteries that can be swapped out, along with 14 modular battery swap stations located in Tokyo.
• March 2025: Japan and Korea have created prototype nuclear batteries. The Japan Atomic Energy Agency claims to have developed the world's first "rechargeable uranium battery," which has successfully undergone tests demonstrating its charging and discharging capabilities. At the same time, researchers in South Korea have engineered a prototype betavoltaic battery that is powered by the carbon-14 isotope.

REPORT COVERAGE

The Japan battery market report provides a detailed analysis of the market. It focuses on market dynamics and key industry developments, such as mergers and acquisitions. Additionally, it includes information about the growing battery demand across various applications, battery penetration in major markets, and technological advancements. Besides this, the report also offers insights into the latest industry trends and the impact of various factors on the demand for battery.

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Report Scope & Segmentation