30 Companies to Launch Supply Chain Partnership in April
The Yomiuri Shimbun reported on March 8 that about 30 battery-related companies in Japan would form a supply chain partnership next month. The companies include GS Yuasa, Prime Planet Energy & Solutions and Sumitomo Metal Mining.
A battery is a key component of an electric vehicle accounting for approximately 30 percent of its manufacturing cost. The 30 or so companies will collaborate for more efficient raw material procurement and battery production and supply. In addition, they will work together with the Ministry of Economy, Trade and Industry to come up with guidelines on rare metal smelting and recycling.
According to the news report, the partnership is to compete with China, which has the highest share in the global EV battery market and is home to abundant rare metals such as nickel and lithium for use in EV batteries.
According to market research firm SNE Research, CATL topped the global EV battery market with a market share of 24 percent last year, followed by LG Energy Solution (23.5 percent), Panasonic (18.5 percent), BYD (6.7 percent), Samsung SDI (5.8 percent) and SK Innovation (5.4 percent). The combined market share of the Chinese companies on the top 10 list was 37.5 percent and those of their South Korean and Japanese counterparts were 34.7 percent and 19.9 percent, respectively. The share of the Chinese companies amounted to 45.1 percent in 2019.
Japan’s efforts are bearing fruit in the field of all-solid-state batteries (ASSBs) in particular. At present, Toyota is leading the global ASSB development with thousands of patents. It has been reported that the company is planning to release an ASSB-based EV in the near future. South Korean, Chinese and German battery manufacturers and automakers are working on ASSBs, too.