Japan Lithium-ion Battery Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Japan Lithium-ion Battery Market Trends and Insights

Automotive Segment to Dominate the Market

• Japan is one of the major countries in the global battery market. The country is emerging as a prominent growth area for potential investors because of its positive outlook toward the adoption of electric vehicles in the automotive sector.
• Vehicles with internal combustion engines were the only types used earlier. However, technology has been shifting toward electric vehicles (EVs) due to growing concerns for the environment. Mainly lithium-ion batteries are used in EVs as they provide high energy density, low self-discharge, less weight, and low maintenance.
• Lithium-ion battery systems propel plug-in hybrid and electric vehicles. Lithium-ion batteries are the only available technology capable of meeting OEM requirements for the vehicles' charging time and driving range due to their fast recharge capability, high energy density, and high discharge power. The lead-based traction batteries are not competitive in total hybrid electric vehicles because of their lower specific energy and higher weight.
• In 2021, lithium-ion battery production value accounted for 43% of Japan's total battery production value. Around JPY 437billion of Li-ion batteries were produced in Japan in 2021.
• Hence, owing to the above points, the Automotive segment is likely to see significant growth in the market during the forecast period.

Increasing Adoption of Electric Vehicles Likely to Drive the Market

• The Japanese CHAdeMO Association signed a memorandum of understanding (MoU) with the China Electricity Council to develop a common ultra-fast charging standard, including vehicle-to-grid functionality. This is expected to boost the demand for EVs in Japan over the forecast period, increasing the market for batteries to operate vehicles.
• By 2050, Japan aims to realize a 'Well-to-Wheel Zero Emission' policy, in line with the global efforts to eliminate emissions, focusing on energy supply and vehicle innovation. Replacing all vehicles with EVs can reduce greenhouse gas emissions by around 80% per vehicle, including an approximate 90% reduction per passenger vehicle.
• Japan increased its EV car stock from 3,566 units in 2010 to 340 thousand units in 2021, which is likely to rise during the forecast period, thus supporting the demand for Lithium-ion batteries..
• The Government of Japan (GOJ) has set a target t by 2035, all new cars sold will be environment friendly. In Japan, eco-friendly vehicles are called Clean Energy Vehicles, or CEVs, to differentiate from fossil fuel-based vehicles. The country is also offering to subsidize part of purchasing CEVs, such as Battery Electric Vehicles (BEVs), wherein the maximum CEV subsidies per vehicle in 2021 was about USD 7,200. Such steps by the government are likely to create ample opportunity for the Lithium-ion battery market.
• Hence, owing to the above points, Electric Vehicles are expected to see significant market growth in the Lithium-ion Battery market during the forecast period.