While Japan's global battery market share has halved to 12.4% amid fierce competition, the domestic industry is charging ahead at a blistering pace, with its market size ballooning to 2.5 trillion yen in 2023 and projected to nearly triple by 2030, fueled by a massive wave of innovation in solid-state technology and surging demand from electric vehicles and energy storage systems.
Key Takeaways
- In 2023, Japan's lithium-ion battery market size reached approximately 2.5 trillion JPY, growing at a CAGR of 15.2% from 2018 to 2023 driven by EV demand
- The Japan battery industry saw a 22% year-on-year revenue increase in 2022, totaling 4.1 trillion JPY from rechargeable batteries
- Projections indicate Japan's battery market will hit 5.8 trillion JPY by 2027 with a CAGR of 18.5%, fueled by solid-state battery R&D
- Japan's lithium-ion battery production capacity expanded to 250 GWh in 2023, up 30% from 2022
- Panasonic's cumulative EV battery production in Japan exceeded 100 GWh by end-2023 at its Wakayama plant
- Japan's total lithium-ion battery output reached 180 GWh in 2023, a 25% increase YoY
- Panasonic holds 28% market share in Japan's lithium-ion battery production in 2023
- GS Yuasa captured 15% of Japan's automotive battery market in FY2023 with 650 billion JPY sales
- Panasonic's battery division revenue: 2.1 trillion JPY in FY2023, 40% of company total
- Japan's solid-state battery R&D investment reached 200 billion JPY in FY2023, led by Toyota
- Panasonic announced 4680-type cylindrical cells with 20% higher energy density in 2023 tests
- GS Yuasa developed 700Wh/kg lithium-sulfur batteries prototype in 2023 for aviation
- Japan exported $12.5 billion worth of batteries in 2023, up 28% YoY mainly to US/EU
- Japan's lithium-ion battery exports volume: 95 GWh in 2023, 18% of production
- Imports of battery materials to Japan: 1.2 million tons lithium compounds in 2023, up 40%
Japan's battery industry is growing rapidly, driven by strong electric vehicle demand.
Major Companies and Market Share
- Panasonic holds 28% market share in Japan's lithium-ion battery production in 2023
- GS Yuasa captured 15% of Japan's automotive battery market in FY2023 with 650 billion JPY sales
- Panasonic's battery division revenue: 2.1 trillion JPY in FY2023, 40% of company total
- AESC (Envision) supplied 12% of Japan's EV battery market in 2023 with 22 GWh shipments
- Hitachi Astemo's battery sales reached 300 billion JPY in 2023, 18% market share in hybrids
- Primearth EV Energy holds 22% share in NiMH hybrid batteries in Japan 2023
- FDK Corporation's share in industrial NiCd batteries: 35% in Japan 2023
- Asahi Kasei dominates 45% of Japan's battery separator market with Hipore films in 2023
- Sumitomo Chemical's 25% share in battery electrolyte materials market in Japan 2023
- Mitsubishi Chemical holds 20% of cathode material market for LiB in Japan 2023
- GS Yuasa's lead-acid battery market share: 28% in Japan automotive sector 2023
- Panasonic Energy's global cell production share from Japan plants: 15% in 2023
- NEC Energy Solutions (now NTT Facilities) 10% share in ESS batteries Japan 2023
- Furukawa Battery's 32% share in Japan's UPS battery market 2023
- Japan has 12 major LiB manufacturers with top 5 controlling 85% domestic production in 2023
- Toyota-Honda joint battery venture targets 20% EV market share via supply in Japan by 2027
- Kyushu-based battery firms cluster holds 40% of Japan's south production capacity 2023
- Sanyo (Panasonic) legacy plants contribute 18% to current cylindrical cell output Japan 2023
- Blue Energy (Mitsubishi) 8% share in sodium-ion pilot production Japan 2023
- TDK's 25% market share in small lithium primary batteries for electronics Japan 2023
Major Companies and Market Share Interpretation
While Panasonic reigns as the lithium-ion king and a web of specialized champions dominate every niche from separators to sodium-ion pilots, Japan's battery ecosystem is a meticulously orchestrated consortium, less a single battlefield and more a well-rehearsed keiretsu opera where everyone has a critical solo but the score is written for global electrification.
Market Size and Growth
- In 2023, Japan's lithium-ion battery market size reached approximately 2.5 trillion JPY, growing at a CAGR of 15.2% from 2018 to 2023 driven by EV demand
- The Japan battery industry saw a 22% year-on-year revenue increase in 2022, totaling 4.1 trillion JPY from rechargeable batteries
- Projections indicate Japan's battery market will hit 5.8 trillion JPY by 2027 with a CAGR of 18.5%, fueled by solid-state battery R&D
- In FY2022, domestic demand for automotive lithium-ion batteries in Japan surged 35% to 45 GWh
- Japan's share of global lithium-ion battery market was 12.4% in 2023, down from 25% in 2015 due to Asian competition
- The secondary battery segment in Japan grew to 1.8 trillion JPY in 2023, representing 65% of total battery market
- EV battery demand in Japan is expected to reach 120 GWh by 2030, growing at 28% CAGR from 2023 levels
- Japan's industrial battery market expanded 14% YoY to 850 billion JPY in 2022, driven by energy storage systems
- Lithium-ion batteries accounted for 78% of Japan's portable battery market value in 2023 at 320 billion JPY
- The overall Japan battery market CAGR from 2023-2030 is forecasted at 16.7%, reaching 7.2 trillion JPY by 2030
- In 2023, Japan's automotive battery production value hit 1.2 trillion JPY, up 19% from 2022
- Consumer electronics battery market in Japan was valued at 450 billion JPY in 2023 with 12% growth
- Japan's ESS battery market size doubled to 150 billion JPY in 2023 from 2021
- By 2025, Japan's lithium battery market is projected to grow 25% to 3.2 trillion JPY
- Stationary battery market in Japan reached 280 billion JPY in FY2022, up 17%
- Japan's battery recycling market valued at 50 billion JPY in 2023, expected to triple by 2030
- Power storage battery shipments in Japan increased 40% to 2.5 GWh in 2023
- Japan's lead-acid battery market was 650 billion JPY in 2023, stable growth at 3% CAGR
- NiMH battery market in Japan declined to 120 billion JPY in 2023, down 8% YoY
- Overall rechargeable battery production value in Japan was 3.5 trillion JPY in FY2023
Market Size and Growth Interpretation
Though Japan's battery industry is charging ahead at an electrifying pace, it's clear the global race has shifted from a solo sprint to a relentless, innovation-fueled marathon where maintaining its current voltage requires outrunning fierce competition.
Production and Capacity
- Japan's lithium-ion battery production capacity expanded to 250 GWh in 2023, up 30% from 2022
- Panasonic's cumulative EV battery production in Japan exceeded 100 GWh by end-2023 at its Wakayama plant
- Japan's total lithium-ion battery output reached 180 GWh in 2023, a 25% increase YoY
- GS Yuasa's battery production capacity in Kyoto reached 20 GWh annually by 2023 for aircraft and EV
- Japan produced 45 GWh of automotive lithium-ion batteries domestically in 2023
- Murata Manufacturing's MLCC-integrated battery production line in Japan outputs 5 GWh/year since 2023
- Japan's lead-acid battery production volume was 120 million units in 2023, down 2% YoY
- FDK Corporation's NiMH battery plant in Japan has 2 GWh capacity, fully operational in 2023
- Toyota's in-house battery production at Prius plant reached 10 GWh cumulative by 2023
- Japan's ESS battery production hit 8 GWh in 2023, up 50% from prior year
- Asahi Kasei's lithium-ion separator production capacity in Japan is 1.2 billion m²/year as of 2023
- Sumitomo Chemical's electrolyte solution plant output 15,000 tons/year for batteries in 2023
- Hitachi's high-voltage battery production for EVs at Yokohama plant: 3 GWh/year capacity in 2023
- Japan's total battery production facilities number 150+ with 300 GWh combined capacity target by 2025
- Envision AESC's Japan plant in Saganoseki produces 9 GWh/year of 46-series cells since 2023
- Primearth EV Energy's hybrid battery output: 12 million units cumulative by 2023 in Japan
- Japan's cylindrical battery production dominated 60% of output at 108 GWh in 2023
- Pouch-type battery production in Japan: 50 GWh in 2023, mainly for EVs
- Prismatic battery output: 22 GWh from Japanese firms in 2023
Production and Capacity Interpretation
Japan is quietly but decisively shifting from being a carmaking titan to a battery-making powerhouse, with its lithium-ion output surging past the capacity of its iconic lead-acid units and its corporate giants methodically building a sprawling, multi-technology supply chain from raw materials to finished cells.
Technological Advancements
- Japan's solid-state battery R&D investment reached 200 billion JPY in FY2023, led by Toyota
- Panasonic announced 4680-type cylindrical cells with 20% higher energy density in 2023 tests
- GS Yuasa developed 700Wh/kg lithium-sulfur batteries prototype in 2023 for aviation
- Toyota's solid-state battery achieves 1,000km range in 10-min charge demo 2023
- Hitachi Zosen and NEDO's all-solid-state battery hits 50% higher safety in 2023 trials
- Idemitsu Kosan's sulfur-based solid electrolyte patented in 2023 boosts conductivity 10x
- Murata's ceramic-based solid-state battery for IoT lasts 20 years, commercialized 2023
- Asahi Kasei's Hipore separator reduces short-circuit risk by 30% in new 2023 LiB design
- Sumitomo Chemical's fluoride-free electrolyte improves LiB life by 50% to 5,000 cycles 2023
- Mitsubishi Chemical's NCA cathode material reaches 230mAh/g capacity in 2023 mass prod
- Japan's fast-charging battery tech by TDK achieves 80% SOC in 5 min, piloted 2023
- Sodium-ion battery by GS Yuasa and Furukawa reaches 160Wh/kg, prototype 2023
- QuantumScape-Japan collab sulfide SSE hits 30mS/cm conductivity in lab 2023
- Honda's thin-film solid-state battery for drones: 300Wh/kg density 2023 demo
- NEDO-funded bipolar LiB stacks 20% higher voltage efficiency in 2023 prototypes
- Panasonic's recycled cathode material retains 95% performance in new cells 2023
- Japan's 4R Energy cobalt-free LFP cells for ESS commercialized 2023
- Si anode tech by Hitachi max 40% capacity boost vs graphite in 2023 EV trials
- Semi-solid-state battery by Toyota-Murata: 50% faster ion diffusion 2023
- Lithium-metal battery R&D by Kyoto Univ achieves dendrite-free cycling 1,000x 2023
- Japan's battery patents filed: 15,000 in 2023, 30% on solid-state tech
- Flexible battery by DNP for wearables: bends 10,000x with 90% capacity retention 2023
Technological Advancements Interpretation
While Japan’s battery industry is loudly racing toward solid-state supremacy and charging superheroics, the quiet, parallel victories in safety, recycling, and sheer durability reveal a mature strategy intent on winning the marathon, not just the first sprint.
Trade and Global Competitiveness
- Japan exported $12.5 billion worth of batteries in 2023, up 28% YoY mainly to US/EU
- Japan's lithium-ion battery exports volume: 95 GWh in 2023, 18% of production
- Imports of battery materials to Japan: 1.2 million tons lithium compounds in 2023, up 40%
- Japan-US battery trade volume hit $4.8 billion in 2023, Japan surplus $3.2B
- EU-Japan battery exports: 25 GWh LiB to Europe in 2023, under EPA growth 35%
- China's dominance led to Japan battery import surge: 15 GWh cells from China 2023
- Japan's global EV battery supply share: 11% in 2023, down from 30% in 2015
- Battery trade balance positive at 1.1 trillion JPY for Japan in FY2023
- Exports to ASEAN: 30% of Japan's battery shipments 18 GWh in 2023
- Korea-Japan battery trade: Japan imported $2.1B materials, exported $1.5B cells 2023
- Japan's overseas production ratio for batteries: 55% in 2023, mainly US/China plants
- FDI in Japan's battery sector: $15B inflows 2023 from Hon Hai, CATL partners
- Japan ranks 2nd globally in battery tech competitiveness index 2023 score 92/100
- Battery exports to India: doubled to $800M in 2023 via Suzuki-Toyota supply
- Global ranking: Japan 3rd in LiB exports value $10B behind China/Korea 2023
- Japan's cathode material exports: 45,000 tons to global OEMs in 2023
- Anode material trade surplus: Japan exported 20,000 tons graphite equivalents 2023
- Separator exports from Japan: 800 million m² in 2023, 40% to EV makers abroad
- Electrolyte solution exports: 25,000 tons from Japan 2023, mainly to US
- Japan invested 1 trillion JPY overseas in battery plants 2023, US share 60%
Trade and Global Competitiveness Interpretation
While Japan's battery industry deftly exports high-value cells and materials globally, its strategic dependence on importing raw materials and its shrinking global market share reveal a nation furiously pedaling to power the world's electric transition while grappling with its own supply chain vulnerabilities.
Sources & References
- Reference 1STATISTAstatista.comVisit source
- Reference 2METImeti.go.jpVisit source
- Reference 3MARKETSANDMARKETSmarketsandmarkets.comVisit source
- Reference 4JEITAjeita.or.jpVisit source
- Reference 5IEAiea.orgVisit source
- Reference 6YANOyano.co.jpVisit source
- Reference 7NEDOnedo.go.jpVisit source
- Reference 8FUJI-KEIZAIfuji-keizai.co.jpVisit source
- Reference 9GRANDVIEWRESEARCHgrandviewresearch.comVisit source
- Reference 10IDCidc.comVisit source
- Reference 11JPEAjpea.or.jpVisit source
- Reference 12BUSINESSWIREbusinesswire.comVisit source
- Reference 13JBRjbr.or.jpVisit source
- Reference 14BLOOMBERGbloomberg.comVisit source
- Reference 15NEWSnews.panasonic.comVisit source
- Reference 16SNERESEARCHsneresearch.comVisit source
- Reference 17GS-YUASAgs-yuasa.comVisit source
- Reference 18MARKLINESmarklines.comVisit source
- Reference 19CORPORATEcorporate.murata.comVisit source
- Reference 20BIAbia.or.jpVisit source
- Reference 21FDKfdk.co.jpVisit source
- Reference 22GLOBALglobal.toyotaVisit source
- Reference 23ASAHI-KASEIasahi-kasei.comVisit source
- Reference 24SUMITOMO-CHEMsumitomo-chem.co.jpVisit source
- Reference 25HITACHIhitachi.comVisit source
- Reference 26ENVISION-AESCenvision-aesc.comVisit source
- Reference 27PRIMEARTHprimearth.comVisit source
- Reference 28WWW COUNTERPOINTRESEARCHwww Counterpointresearch.comVisit source
- Reference 29HOLDINGSholdings.panasonicVisit source
- Reference 30AESC-GROUPaesc-group.comVisit source
- Reference 31HITACHI-ASTEMOhitachi-astemo.comVisit source
- Reference 32ASAHI-KASEIasahi-kasei.co.jpVisit source
- Reference 33M-CHEMICALm-chemical.co.jpVisit source
- Reference 34PANASONICpanasonic.jpVisit source
- Reference 35NTT-Fntt-f.co.jpVisit source
- Reference 36FURUKAWADENCHIfurukawadenchi.co.jpVisit source
- Reference 37TOYOTAtoyota.co.jpVisit source
- Reference 38PREFpref.kyushu.meti.go.jpVisit source
- Reference 39BLUE-ENERGYblue-energy.jpVisit source
- Reference 40TDKtdk.comVisit source
- Reference 41IDEMITSUidemitsu.comVisit source
- Reference 42QUANTUMSCAPEquantumscape.comVisit source
- Reference 43GLOBALglobal.hondaVisit source
- Reference 444R-ENERGY4r-energy.comVisit source
- Reference 45TOYOTAtoyota.jpVisit source
- Reference 46KYOTO-Ukyoto-u.ac.jpVisit source
- Reference 47JPOjpo.go.jpVisit source
- Reference 48DNPdnp.co.jpVisit source
- Reference 49CUSTOMScustoms.go.jpVisit source
- Reference 50USTRustr.govVisit source
- Reference 51POLICYpolicy.trade.ec.europa.euVisit source
- Reference 52ABOUTabout.bnef.comVisit source
- Reference 53JFTCjftc.or.jpVisit source
- Reference 54KOREATIMESkoreatimes.co.krVisit source
- Reference 55JETROjetro.go.jpVisit source
- Reference 56IMDimd.orgVisit source
- Reference 57COMMERCEcommerce.gov.inVisit source
- Reference 58WITSwits.worldbank.orgVisit source
- Reference 59NIKKEInikkei.comVisit source
- Reference 60TORAYtoray.co.jpVisit source
- Reference 61UGCCHEMugcchem.comVisit source