In a significant move to enhance Japan's position in the electric vehicle (EV) market, Toyota Motor and Nissan Motor, along with other companies, have announced plans to expand the country's battery production capacity by around 50%. This initiative is supported by the Japanese government through a substantial investment of 1 trillion yen (approximately $6.97 billion) .

The investment aims to bolster the production of storage batteries, which are crucial for the growing EV market. Toyota, Nissan, and other companies will receive government support to increase their production capabilities. This move is part of Japan's broader strategy to strengthen its supply chain and competitiveness in the global EV market .

Toyota plans to ramp up production of solid-state and prismatic batteries, with significant investments in its Hyogo and Fukuoka facilities. Nissan, on the other hand, will focus on increasing the production of lithium-iron-phosphate batteries domestically by 2028 .

This initiative is expected to significantly boost Japan's annual battery production capacity, helping the country transition towards a more sustainable and electrified future .