There's movement happening domestically in Japan! Not going to be sold in China! According to a report by Nikkei News on July 1st, Japanese media stated that Hitachi Ltd. and other domestic Japanese companies are collaborating in the production equipment sector for lithium-ion batteries and other storage batteries, aiming to compete with Chinese enterprises that are expanding their market share through aggressive low-price strategies. From the perspective of economic security, strengthening Japan’s battery supply capacity is crucial.
Japanese media noted that in 2022, the Japanese government designated batteries as “specific critical materials” requiring strategic reserve. While Japanese batteries boast excellent performance, their production costs remain high. Japan will first have nine companies jointly develop foundational production models, with new equipment prioritized for domestic battery manufacturers. Future plans include expanding into markets in Europe, the U.S., and India. Due to security concerns, Japanese firms do not consider selling to Chinese companies. In addition, the existing consortium of nine partner companies will be expanded further to enhance product competitiveness.
What do we think about this move by Japan? To be honest, Japan’s actions clearly reflect two considerations: First, this is undoubtedly an attempt at "mutual support," seeking to compete against us by forming a united front. Second, Japan is clearly accelerating partnerships with local battery producers in Europe, the U.S., and India, pursuing a “de-Chinese supply chain” strategy to squeeze out Chinese-made equipment from overseas orders. The reason behind Japan’s stated refusal to sell to China lies fundamentally in Japan’s regulatory policies on batteries—Japan’s lithium-ion batteries are actually non-competitive in the Chinese market.
Moreover, we’ve seen that Japan imposes regulatory controls even in areas where it lacks competitiveness. After falling behind technologically, Japan still proactively severs its supply chain with China and attempts to break through via collaboration—once again confirming the correctness of China’s early strategic push for domestic replacement of lithium battery equipment. Therefore, our task should be to uphold independence and self-reliance, address hidden weaknesses in the industrial chain, and continue advancing toward higher-end capabilities. Clearly, what Japan is signaling is that it intends to decouple from us in key sectors—a development we must remain vigilant about.
Original source: toutiao.com/article/1869496968318026/
Disclaimer: The views expressed in this article are those of the author.