In line with the global trend toward decarbonization, Japanese general trading companies are expanding their investments in areas such as battery raw materials and components, ESS (Energy Storage System) manufacturing and sales, and ESS-based service businesses.

• With the growing need for stable operation of renewable energy sources with fluctuating output, the global lithium-ion battery (LIB) ESS market is expected to experience high growth, with an average annual growth rate of 10.6% through 2035.

[Mitsubishi Corporation] is advancing its ESS business through partnerships with leading companies across various sectors, such as batteries (GS Yuasa), telecommunications (NTT), and automotive components (Bosch).

• The company is involved in nickel mining development in Canada, battery manufacturing through Lithium Energy Japan, and ESS service operations via NTT Anode Energy.

[Mitsui & Co.] is strengthening its battery business for commercial vehicles, such as buses, and plans to focus on the V2G (Vehicle to Grid) business using electric vehicle batteries.

• Key initiatives include anode material business in Canada, battery manufacturing with Forsee Power of France, and ESS services in collaboration with The Mobility House of Germany.

[Itochu Corporation] excels in the manufacturing and sales of home ESS systems and has established a fully integrated value chain that covers everything from battery materials to recycling.

• Its offerings include home and commercial ESS products and systems, optimal charging and discharging services, and battery recycling businesses.

[Sumitomo Corporation] is focusing on manufacturing ESS solutions and station services utilizing recycled batteries.

• The company’s business revolves around 4R Energy, a joint venture with Nissan Motor Company, which applies the "4R" concept: Recycle, Reuse, Refabricate, and Resell.

[Marubeni Corporation] is investing in battery raw materials such as graphite and rare earth elements while leveraging its strength in the power sector to enhance power grid operations through ESS applications.

• Its activities include raw materials business, such as graphite mine development and rare earth recycling, EV charger business, and power supply-demand management in Japan and the UK.

Japanese general trading companies are seizing new growth opportunities in the ESS sector by leveraging their expertise in resource development, information gathering, and investment capabilities to drive proactive investments and commercialization.

• While primarily aimed at identifying future growth businesses, these initiatives also expand existing value chains built on resource development and various investments, generating synergies across business operations.

• The core driver behind these business efforts lies in the organizing capabilities of general trading companies, which bring together each part of the ESS value chain to commercialization.