Japan Lithium Battery Charging And Swapping Cabinets Market
The Japanese lithium battery charging and swapping cabinet market is experiencing rapid growth driven by the surge in electric vehicle (EV) adoption and renewable
For Eku Energy, the LTDA is important to the business model of its Japanese projects but the developer, perhaps best known for projects in the UK and Australia, sees three pathways to commercialisation for large-scale batteries in Japan. The company secured a 20-year tolling agreement for its first Japan project, the 30MW/120MWh Hirohara BESS.
The research firm found the system costs excluding taxes to have increased 26.5% from 49,000 yen/kWh in FY2022 to 62,000 yen/kWh in FY2023. The majority of the increase was driven by the increase in the cost of the batteries themselves.
METI plans to only offer 800 MW of battery storage capacity for its next auction, down from 1.7 GW awarded in the last round. Natural gas-fired capacity for the next auction will be raised to 3 GW, from 1.3 GW previously awarded, and 1.5 GW for nuclear plants.
While amendments to the Renewable Energy Act introduced the Feed-in Premium to encourage renewable integration, no unified framework exists for battery storage. Project developers cite uncertainty around licensing, grid access, and fire safety rules—raising both compliance costs and risk premiums. Urban density further compounds the problem.
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