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Japan to invest nearly $2 billion in chip and storage battery projects

The Japanese government continues immersed in the long-distance race to maintain its preferential position in the production and distribution of elements of the technology sector worldwide. The last decision of the executive of Shinz? abe has been the announcement of subsidies worth $1.8 billion for projects related to production of chips and storage batteries.

Yasutoshi Nishimurathe country’s Minister of Economy, Trade and Industry, says that this will reinforce Tokyo’s position as a technological powerhouse and grant a greater security to the supply chain. Specifically, 1,380 million dollars will be granted (184.6 billion yen) in public subsidies to eight proposals related to storage batteries and some 56.4 billion yen for two semiconductor projects.

The main proposals

We must highlight the plan promoted by 1the automobile manufacturer honda engine and the battery manufacturer GS Yuasa Corpwhere some will be invested 430 billion yen Produced by storage batteries. To partially cover this construction, the ministry will contribute up to 158.7 billion yen in subsidies. Batteries for electric vehicles and homes will be manufactured.

It is not a purely economic and technological bet, but also in favor of the green transformation of the country, the GX promo. Although there is still no exact date for the start of the infrastructure, Honda, GS Yuasa and Blue Energy (their joint doyen battery company), have assured that they will start production in April 2027. Similarly, it is expected that mass production in series will begin in October of that same year.

The initial objective will be to build a new plant that will generate an average of 20 gigawatt hours (GWh), although they did not offer details about the location that the factory will have. Currently there is a great demand for storage batteries in Japan, something that is even expected to extend to the segment of battery electric vehicles (BEV), as he said in a statement. Toshihiro MibeCEO of Honda.

Based on this, the economic effects have not been long in arriving automatically in the stock market. The shares of GS Yuasa experienced, following the announcement, the highest growth in one day, reaching 2,365 yen (7%). For its part, Honda shares rose 1.7% to 3,574 yen.

Toyota’s latest investment in Japan

At the end of August, the Japanese car manufacturer announced the investment of 725 billion yen (5,203 million euros) in the production of batteries for electric cars in the US and Japan. The beginning of the assembly of the batteries will take place between 2024 and 2026thereby increasing production in both countries up to 40 GWh. However, the largest investment will come from Japan with some 400 billion yen (2,870.5 million euros), the rest being allocated to the facilities in North Carolina.

The growing demand for electric vehicles in Japan has been seen by Toyota as a market opportunity, so its goal is none other than to become the best-selling car in the world. This fight for electrification has been joined by other car manufacturers such as Volkswagenwhich will build six large factories in Europe until 2030.

The Japanese Honda and the South Korean LG Energy Solution They also announced the creation of a joint venture to produce batteries for the US market, each providing seed capital of $4.4 billion.

Japan and its fight to regain the throne of semiconductors

The country has been losing weight in terms of factory equipment and innovation processes, but now it is struggling to recover those glory days. On April 24, the news was released that eight Japanese technology companies, including sony and Toyota, were establishing a joint venture called rapidus. It has also been joined in the last few hours by the American company IBM.

The goal is none other than consolidate in the chip market and establish the 2nm manufacturing process in 2025 and bring the 1nm node in the near future. If the project is consolidated, it would be possible to stop being technologically dependent on China, which is currently one of the largest suppliers in the world. This will include part of the 480 million euros provided by the Japanese government to boost the industry. However, it is not ruled out that the investment could be expanded in the near future.

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