Japan Strengthens EV Alliance with India to Build China-Free Battery Supply Chain – EQ
In Short : Japan is set to invest strategically in India’s EV and battery supply chain to reduce reliance on China. A delegation will visit in July to explore joint ventures, tech transfer, and R\&D. Aligned with India’s localization goals and Japan’s ¥350 billion EV strategy, the partnership aims to build resilient alternatives in the Indo-Pacific’s clean energy landscape.
In Detail : Japan is preparing to deepen its strategic collaboration with India by investing in the country’s electric vehicle and battery supply chain. This initiative is part of Tokyo’s broader strategy to reduce its reliance on China for critical battery components and materials. A high-level Japanese delegation is expected to visit India in July 2025 to explore investment opportunities and partnerships.
India is rapidly emerging as a key player in the global battery ecosystem, supported by its Production-Linked Incentive (PLI) and FAME schemes. These government initiatives aim to localize up to 60% of the EV and battery supply chain by 2030. Japan sees India as a viable alternative to China and a strategic partner in securing stable battery supply chains.
The Japanese government has committed up to ¥350 billion (around \$2.4 billion) in subsidies to support its domestic EV battery production. It is targeting 150 GWh of production capacity by 2030, and partnerships with India can help meet these ambitious goals. Japan is particularly interested in India’s plans to develop 30 GWh of advanced chemistry cell battery storage.
The collaboration is expected to extend beyond just manufacturing. Joint research and development, technology transfer, and workforce training are also on the agenda. These steps are intended to create a long-term, sustainable supply chain that benefits both nations and strengthens their energy security.
This bilateral effort reflects a growing “China+1” investment strategy adopted by Japanese firms, which are increasingly shifting supply chains to India. In 2023, Japanese foreign direct investment in India surpassed that in China, highlighting a strategic shift in regional economic priorities. The EV and battery sectors are now central to this evolving relationship.
In addition to batteries, the two countries are also exploring cooperation in electric vehicles, green hydrogen, and digital energy infrastructure. These efforts not only address energy and industrial goals but also reinforce geopolitical ties in the Indo-Pacific region. Together, India and Japan aim to build a more resilient and diversified clean energy future.
