Japan has raised support for the production of storage batteries to up to ¥312.2 billion ($2.2 billion), the government said, pledging nearly $1 billion in new subsidies for Toyota and other manufacturers as part of a push towards greater economic supply chain security.
The move shows Tokyo is confident about ramping up battery production support after the United States and Japan struck a deal on electric vehicle (EV) battery minerals in March that is key to giving Japanese automakers wider access to a new $7,500 EV tax credit in the U.S.
"As the international competition for storage batteries is intensifying, competition for capital investment is also becoming more intense," Minister of Economy, Trade and Industry Yasutoshi Nishimura told reporters.