20240417 biz spot

A surge in electric vehicle sales is driving up demand for equipment used to produce batteries and other parts. But some Japanese companies are struggling to keep up.

Japan's small EV battery suppliers feel the heat in race for scale

Tokyo urges alliances to stay competitive but companies wary of giving up control

TOKYO -- Smaller companies play a big role in Japan's electric vehicle battery supply chain, indirectly supporting the likes of Toyota Motor and Tesla. But many are struggling to keep pace with the speed and scale of investment needed as EV demand booms, threatening to create bottlenecks in an industry that Tokyo is keen to promote.

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