TRENDS Research & Advisory
As global demand for energy storage solutions grows alongside the expansion of renewable energy, Japan recognizes the necessity of diversifying its battery technologies to
Their enhanced safety profile, due to a reduced risk of thermal runaway compared to LiBs, can make them suitable for large-scale grid storage and disaster resilience initiatives, a priority for Japan given its vulnerability to earthquakes and extreme weather events. Figure 2: Funding in Battery Technology, Japan
The push is reinforced by Tokyo's 2025 regulation requiring solar panels on new homes, and the launch of virtual power plant (VPP) programs—slated to begin in fiscal 2026—that will let households sell surplus energy to the grid.
The need to incentivize more balancing capacity in Japan is strong. Renewable energy sources already account for a fifth of domestic electricity volumes, but the sector's further expansion is focused on solar and wind power, which are intermittent. By 2030, official estimates show variable renewable energy reaching 20% of Japan's power mix.
However, the intermittent nature of renewables necessitates efficient and scalable energy storage solutions to ensure grid stability and reliability. Lithium-ion batteries (LiBs) have long been the dominant choice for energy storage for grid applications.
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