Japan promotes two-pronged car electrification subsidies upstream and downstream. These Chinese manufacturers have cut into the battery supply chain.

Following the US government's "enhanced" electric car purchase subsidy program, the Japanese government will launch a similar policy: to promote the popularity of pure electric vehicles, Japan's Ministry of the Environment and the Ministry of economy, Trade and Industry plans to add 37.5 billion yen to the government budget in 2021, of which 67 percent (25 billion yen) will be used to double the subsidy for the purchase of pure electric vehicles, up to 800000 yen, according to the Nikkei News. The plan is expected to be implemented early next year.

The subsidy policy will benefit plug-in hybrid vehicles (PHV), light electric vehicles, fuel cell vehicles (FCV), imported cars will also benefit.

In the field of automobile electrification, the Japanese government has recently announced a number of subsidy programs, not only for consumers of electric vehicles, but also for upstream battery manufacturers, and the battery link has benefited the most from the amount of subsidies.

"Power batteries are the key to green and digital development, and we are considering measures to encourage large battery production bases to join the economic stimulus package," Koichi Hagiuda, minister of economy, trade and industry, said at a meeting with advisers on November 15.

Then, on Nov. 16, Japan will invest about 100 billion yen ($877 million) in subsidies to support the construction of advanced electric car battery factories, according to the Nikkei News. The battery factory subsidy is part of a strategic energy plan unveiled by the Japanese government in October, which aims to make all new passenger cars electric by 2035 and have domestic battery capacity of 100 GWh, enough to power 2.4 million electric vehicles by 2030.

Panasonic is the strongest power battery manufacturer in Japan. According to the ranking of global power battery installed capacity from January to September this year, there are three Japanese battery factories in Top10: Panasonic ranks third, second only to Ningde Times, and LG, 's other two companies, AESC and PEVE, rank ninth and 10th respectively. PEVE, whose full name is Panasonic Electric vehicle Energy Company, is a vehicle power battery company jointly funded by Panasonic, its subsidiary Panasonic Battery Industry and Toyota Motor in December 1996.

At present, Panasonic is preparing a new generation of cylindrical battery 4680 production line for Tesla. Panasonic's joint venture plant Gigafactory with Tesla in 2021 plans to expand production by 10% to 38-39GWh. it is also considering building a large joint venture battery plant in Norway with Norwegian oil company (Equinor) and Norwegian Hydro electrolytic aluminum plant (Hydro).

It is worth noting that Panasonic has established a battery factory in China and uses materials and equipment provided by domestic suppliers. The material suppliers that have been cut into Panasonic's battery supply chain include: positive link of Xiamen Tungsten Xineng, Fangyuan shares, Zhongwei shares, Xiangtan electrification, Dangsheng Technology, etc., while negative electrode supply systems include Beitri, Putailai and so on. Diaphragm links include Enjie shares, Xingyuan materials, etc., and the field of electrolyte includes Jiangsu Cathay Pacific, New Zebang and so on. Equipment suppliers include pilot Intelligence, Hangke Technology and so on.

Among them, Beitri and Fangyuan have laid out 4680 battery materials, which has mature high-nickel NCA ternary precursor synthesis technology and is one of Panasonic's main suppliers. Panasonic is its biggest customer in the first half of 2021. The 4680 prototype of Hangke Technology is said to have been completed and delivered to customers.