Japan to give up to $1.8 bln in subsidies for storage battery, chip projects (updated)

GS Yuasa

28/04/2023 06:43

(Adds share price moves for GS Yuasa, Honda Motor in final
paragraph)
    By Daniel Leussink
       TOKYO, April 28 (Reuters) - Japan will provide as much
as $1.8 billion in subsidies for a slate of storage battery and
chip-related projects, Industry Minister Yasutoshi Nishimura
said on Friday, marking Tokyo's latest push towards greater
supply chain security.
        The government plans to give up to 184.6 billion yen
($1.38 billion) in subsidies for eight storage battery-related
proposals and up to 56.4 billion yen for two
semiconductor-related projects, Nishimura told reporters.
        Among the proposals that it will subsidise is a plan by
automaker Honda Motor Co Ltd  7267.T  and battery maker GS Yuasa
Corp  6674.T  to invest about 430 billion yen to boost storage
battery production, with the ministry providing up to 158.7
billion yen in subsidies for the project.
        "We have great expectations that this will lead to the
stable supply of storage batteries and the promotion of GX
(green transformation)," Nishimura said.
    In a statement, Honda, GS Yuasa and their 14-year-old
battery joint venture Blue Energy Co Ltd, said they planned to
start production in April 2027 and would start mass production
in October 2027.
        They said they would start by building a new plant that
would target an annual production capacity of at least 20
gigawatt hours (GWh), but did not specify a location or give
further details. 
        "We would like to respond to a wide range of battery
demand in Japan, which is expected to expand in the future,
mainly for BEVs (battery electric vehicles)," Honda Chief
Executive Toshihiro Mibe said in the statement. 
    Shares of GS Yuasa were on course to post their biggest
one-day gain since early February following the news, rising 7%
to 2,365 yen, while Honda shares rose 1.7% to 3,574 yen.
($1 = 133.9600 yen)

 (Reporting by Daniel Leussink; Additional reporting by Elaine
Lies; Editing by Jamie Freed)
 ((daniel.leussink@thomsonreuters.com; Twitter:
@danielleussink;))