Key Facts
• Japan and EU to sign a memorandum on September 15, 2025.
• Agreement focuses on strengthening battery supply chains and reducing reliance on China.
• Includes measures for battery recycling and raw material reuse.
• Data sharing and talent development in the battery industry to be promoted.
• Initiative aligns with the July 2025 Japan-EU “Competitiveness Alliance.”
• Japan’s share in the global EV battery market dropped from 50% in 2015 to 8% in 2023.
• China dominates with 60% of the global EV battery market in 2023.
• China began restricting graphite exports, essential for lithium-ion batteries, in 2023.
• EU sees dependency on Chinese batteries as an economic security risk.
• EU aims to enhance production capacity and ensure high-performance, safe batteries.
• Subsidies and public procurement policies to be reviewed to support the initiative.
Summary
Japan and the European Union (EU) are set to sign a memorandum on September 15, 2025, to strengthen their battery supply chains and reduce reliance on China. This agreement, part of the Japan-EU “Competitiveness Alliance” established in July 2025, includes measures to promote battery recycling, raw material reuse, and data sharing. It also aims to foster talent development and business exchanges in the battery industry. Japan, once a leader in the global EV battery market with a 50% share in 2015, has seen its share drop to 8% in 2023, while China dominates with 60%. China’s restrictions on graphite exports, a key material for lithium-ion batteries, have heightened economic security concerns in the EU. To address these risks, the EU plans to enhance production capacity, review subsidies, and create a favorable environment for high-performance, safe batteries. This collaboration underscores the shared goal of reducing dependency on Chinese manufacturers and ensuring economic security.
