Chinese battery and energy storage company Gotion High-tech and Japanese energy company Edison Power Co. announced they would jointly develop a large storage battery and recycling market in Japan. The pair plan to introduce Gotion’s batteries to the Japanese market.
They said Japan has new opportunities following reform of its Electricity Business Act in May 2022. The act categorises stand-alone BESS businesses and allows them to apply for power grid connections.
Under their agreement, the two companies will pursue planned sales of 1GWh for the first year, rising to 2GWh annually from the second year onwards. Gotion High-tech will provide cells, modules, BMS, etc., while Edison Power Co. will be responsible for customer management, EPC services, energy storage system operation and maintenance, plus other market-side services.
The companies said they would also look to set up a circular storage battery recycling system in Japan.
UK intelligence and advisory firm HC Group said a JPY13 billion ($98 million) Japanese government subsidy programme for BESS construction projects in 2022 brought many new investors in. Falling BESS costs are also anticipated to trigger a significant expansion of battery storage projects and new entrants in Japan. It may take 1-2 years for implementation and operation, it said.
According to the International Energy Agency, Japan’s 6th Strategic Energy Plan released in 2021 sets the introductory prospect for battery storage as 24GWh by 2030 (ten times larger than 2019) for households and industry.
Photo: Edison Power’s Vice President Chihiro Kotama (front left) and Gotion Global’s Executive Vice President cheng Qian (front right) signed the contract on behalf of both parties.
