The EU Japan Centre is releasing a weekly press review covering Japan's economic and policy matters…
The EU Japan Centre is releasing a weekly press review covering Japan's economic and policy matters.
Economic News
▶ Japan aims for all new vehicles to use biofuel by early 2030s
17 Nov, 2024
The Japanese government has urged automakers to make new vehicles compatible with biofuel, aiming for up to 20% biofuel content by the early 2030s to help reduce CO2 emissions. The Ministry of Economy, Trade, and Industry plans to collaborate with the private sector to create an action plan by next summer. While most vehicles can currently use biofuels at up to 3%, higher concentrations require new safety standards and carbon emission checks. The ministry also aims to ensure a stable biofuel supply, with targets for fuel suppliers to provide blends of up to 10% by 2030 and 20% by 2040.
▶ Japan to test anti-drone laser system next year
18 Nov, 2024
The Japanese Defense Ministry plans to conduct a field test in Hokkaido next February of a prototype vehicle equipped with a laser system designed to destroy drones. This development, accelerated by concerns over Russia's invasion of Ukraine, is part of Japan's defense buildup program for 2023-2027. The prototype, completed in October and unveiled in November, features a high-power laser and automatic tracking system capable of shooting down drones from over 1 kilometer away. The test will assess the system's performance and safety under challenging conditions. Mitsubishi Heavy Industries developed the prototype, with ¥3.4 billion allocated for further research in fiscal 2025.
Japan Times: https://www.japantimes.co.jp/news/2024/11/18/japan/japan-antidrone-laser-system/
▶ Japan, Peru to ensure resilient supply chains for critical minerals
18 Nov, 2024
Japan and Peru have agreed to collaborate on building resilient supply chains for critical minerals, aiming to strengthen their strategic partnership under a 10-year roadmap. This agreement, made during Japanese Prime Minister Shigeru Ishiba's visit to Peru, comes amid growing Chinese influence in the region, particularly with China's Belt and Road Initiative. Both leaders emphasized shared values and economic security, with Japan seeking to enhance ties with Peru, a key producer of silver, copper, and zinc. The roadmap includes increased dialogue, defense cooperation, and expanded trade and exchanges, while reaffirming support for a free and open international order.
Mainichi: https://mainichi.jp/english/articles/20241118/p2g/00m/0in/005000c
▶ Japan, Britain to launch ministerial dialogue on economic security
19 Nov, 2024
Japan and Britain have agreed to establish a new framework for dialogue between their economic and foreign ministers to address trade, economic security, and shared challenges, particularly with the prospect of U.S. trade policy changes under President Donald Trump. The agreement, made during a meeting between Japanese Prime Minister Shigeru Ishiba and British Prime Minister Keir Starmer at the G20 summit, mirrors Japan's existing "two-plus-two" format with the U.S. The two countries also discussed closer defense cooperation, including joint efforts on a next-generation fighter jet and Britain's plan to deploy its carrier strike group to the Indo-Pacific. They reaffirmed their commitment to a "free and open" Indo-Pacific and coordinated efforts on issues like Ukraine and East Asia.
Mainichi: https://mainichi.jp/english/articles/20241119/p2g/00m/0in/004000c
▶ 5 times more women in Japan changed jobs in 2023 than 10 years earlier: report
19 Nov, 2024
In 2023, the number of women changing jobs in Japan was five times higher than in 2013, with a significant increase in job switches among women in their 40s, up 17.3 times. The traditional belief that 35 was the upper age limit for career changes is fading, with experience in housework and child care now seen positively by employers. Many women in their 40s are moving into administrative, IT, or clerical roles. Additionally, 40% of job changers experienced wage increases of 10% or more. Companies, facing a labor shortage, are increasingly valuing diverse experiences, including those gained from managing household tasks.
Mainichi: https://mainichi.jp/english/articles/20241118/p2a/00m/0bu/018000c
▶ Revision of the Agreement on Cooperation with the French Republic for the Development of Fast Reactors
20 Nov, 2024
The Ministry of Economy, Trade and Industry (METI) and the Ministry of Education, Culture, Sports, Science and Technology (MEXT) have updated an agreement with France's CEA on fast reactor development. The updated agreement reflects the progress of Japan's fast reactor demonstration project and adds new partners, including Japan Atomic Power and EDF. It also expands cooperation to include additional areas supporting Japan’s reactor development, leveraging France’s expertise in the field to advance research and development.
METI: https://www.meti.go.jp/press/2024/11/20241120001/20241120001.html (Japanese)
Business News
▶ Toyota aims for hydrogen-electric hybrid van public road test in 2025
16 Nov, 2024
Toyota plans to begin public road tests of a hydrogen-electric hybrid van, the HiAce, in Australia next spring. The van, which combines a hydrogen engine and an electric motor, offers a 20% longer driving range of 250 kilometers compared to a hydrogen-only model. This test is part of Toyota's "multi-pathway strategy" to develop various green vehicles, including hydrogen-powered and electric vehicles, to reduce CO2 emissions. The hybrid model addresses challenges such as limited hydrogen stations and high fuel costs. Toyota has been testing hydrogen vehicles in Australia since last year and remains committed to creating a hydrogen-based society.
▶ Asahi Kasei Battery Separator Corporation Breaks Ground on Lithium-ion Battery Separator Plant in the Niagara Region
18 Nov, 2024
Asahi Kasei Battery Separator Corporation has broken ground on a new lithium-ion battery separator manufacturing facility in Port Colborne, Ontario, Canada, marking a significant step in supporting the North American electric vehicle (EV) market. The plant, a joint venture with Honda, is set to begin production in 2027 and will create over 300 full-time jobs in its first phase. The facility will produce 700 million square meters of coated battery separators annually, a key component for EV batteries. This project will be Canada’s first large-scale wet-process separator plant, enhancing Asahi Kasei’s position in the energy storage sector and supporting the transition to cleaner energy.
Asahi Kasei: https://www.asahi-kasei.com/news/2024/e241118.html
▶ Japanese companies increasingly targeted in foreign M&A bids
18 Nov, 2024
This year, there has been a rise in foreign companies attempting to acquire Japanese businesses, driven by factors such as the depreciation of the yen and industry ministry guidelines encouraging acquisitions that boost corporate value. A notable example is the buyout proposal for Seven & I Holdings by Canadian retailer Alimentation Couche-Tard, which increased its offer to ¥7 trillion. Historically, Japanese M&As were mainly outbound, but inbound deals have surged, with 211 cases recorded in 2023, marking a significant increase in deal value. The Ministry of Economy, Trade and Industry's guidelines have made it harder for companies to reject acquisition proposals, leading to heightened concerns about foreign takeovers and potential industry realignments in Japan.
Japan Times: https://www.japantimes.co.jp/business/2024/11/18/economy/foreign-companies-acquisition-japan/
▶ Canon, Imagica Group Release VR Footage Simulating Space Travel; Footage Taken from Stratosphere
18 Nov, 2024
Canon Inc. and Imagica Group Inc. have released VR footage captured from the stratosphere using high-end cameras mounted on a balloon launched to about 25,000 meters. The footage, offering a simulated space travel experience, was showcased at a video industry exhibition in Chiba. The footage was filmed in February over snowy plains in Mongolia at -50°C. The companies aim to use the VR footage in fields like education, tourism, and entertainment, anticipating growing demand for live-action VR videos as VR headset usage increases.
Yomiuri: https://japannews.yomiuri.co.jp/business/companies/20241118-223107/
▶ Microsoft opens AI and robotics research base in Tokyo
18 Nov, 2024
Microsoft has opened an AI and robotics research center in Tokyo, collaborating with local universities, research institutes, and companies like Kawasaki and Nissan. The center aims to integrate AI with Japan's robotics expertise and train personnel in AI skills. Microsoft Japan President Miki Tsukasa highlighted its role in addressing Japan's aging workforce. The opening follows a commitment made during Prime Minister Kishida’s U.S. visit in April.
Japan Time: https://www.japantimes.co.jp/business/2024/11/18/tech/microsoft-ai-robotics-tokyo/
▶ Govt To Conduct Geothermal Excavation Surveys; Promising Renewable Power Source Is Costly to Develop
19 Nov, 2024
Japan's economy ministry is launching an initiative to promote geothermal power generation, leveraging the country's abundant geothermal resources. The government will conduct surveys to reduce high costs and community negotiation challenges for private companies. The Japan Organization for Metals and Energy Security (JOGMEC) will identify potential sites and explore subsurface structures. Geothermal power, which can provide stable, 24/7 electricity, currently accounts for only 0.3% of Japan’s energy mix, with a goal to increase it to 1% by 2030. The government aims to expand renewable energy sources and reduce reliance on thermal power.
Yomiuri: https://japannews.yomiuri.co.jp/politics/politics-government/20241119-223318/
▶ U.S. tech firm ServiceNow to spend $2bn on Japan data center push
19 Nov, 2024
ServiceNow, a U.S. business software provider, plans to invest $2 billion in Japan to expand its data center operations and local office. The investment will support the growth of services, including those using generative AI, and accommodate increasing client demand. ServiceNow will also relocate its Tokyo office by 2025 and continue expanding its workforce, which has already grown significantly. The company aims to strengthen ties with local IT firms and help businesses streamline and modernize their operations. ServiceNow has been operating in Japan since 2013 and is focused on driving digital transformation in the country.
Nikkei Asia: https://asia.nikkei.com/Business/Technology/U.S.-tech-firm-ServiceNow-to-spend-2bn-on-Japan-data-center-push
▶ Rakuten Launches Unmanned Delivery Service in Tokyo; Robot Brings Goods to 62 Locations in Chuo Ward
20 Nov, 2024
Rakuten Group has launched an unmanned delivery service in Tokyo's Harumi district, starting on November 6. The service uses robots to deliver food and other items from local supermarkets and stores to 62 designated locations, including parks and offices. Customers can choose from over 5,300 products, with a ¥100 delivery fee. The robots travel along fixed routes but are remotely controlled at crossings. This marks Rakuten's first unmanned delivery service in Tokyo, with plans for future expansion.
Yomiuri: https://japannews.yomiuri.co.jp/business/companies/20241120-223265/
▶ Japan proposes $1.3bn investment in Rapidus
21 Nov, 2024
The Japanese government plans to invest 200 billion yen ($1.29 billion) in chipmaker Rapidus in fiscal 2025 to encourage private-sector investment and support the development of cutting-edge chips. This follows a previous agreement for 920 billion yen in subsidies, as Rapidus aims to start mass production in 2027. A total of 5 trillion yen is needed for production, and the government will help secure additional funding through debt guarantees and investments. The government also intends to take a stake in Rapidus for greater influence in governance, while the company continues to attract private investors, including major firms like Toyota, SoftBank, and MUFG.
Nikkei Asia: https://x.gd/sCHnn
▶ Tokyo Metro consortium to run London rail line, replacing Hong Kong's MTR
21 Nov, 2024
London has chosen a consortium led by Tokyo Metro to operate the Elizabeth Line, replacing MTR. Tokyo Metro, owning 17.5% of the consortium, will begin operations in May 2025 for up to nine and a half years. This marks Tokyo Metro's first overseas rail project. MTR, which has operated the line since 2022, was not awarded the contract, reflecting shifting UK-China relations. The Elizabeth Line is one of the UK’s busiest, with passenger numbers expected to exceed 250 million by 2030.
▶ JAXA and ESA chiefs talk up collaborations on moon, planetary defense
21 Nov, 2024
At an event in Tokyo, JAXA President Hiroshi Yamakawa and ESA Director General Josef Aschbacher discussed potential collaborations in lunar exploration, planetary defense, and Earth observation. They highlighted the possibility of working together on lunar missions, including ESA's Argonaut cargo lander and JAXA's pressurized rover. Aschbacher also praised JAXA's Lunar Cruiser project, developed with Toyota, as crucial for lunar research. ESA’s new LUNA facility in Germany was offered for astronaut and equipment training. Both agencies emphasized international cooperation in space, with private companies like Japanese startup ispace also contributing to lunar development.
Nikkei Asia: https://x.gd/PZrtI
▶ Japan's chipmaker Kioxia to go public in mid-December
21 Nov, 2024
Japanese chipmaker Kioxia Holdings will list on the Tokyo Stock Exchange in mid-December, after multiple delays. Its market capitalization at debut is expected to be around 750 billion yen ($4.8 billion), below the initial target of over 1.5 trillion yen. Kioxia plans to raise up to 99.1 billion yen, with major shareholders Bain Capital and Toshiba likely selling their stakes. The company aims to use the funds to boost production of advanced memory chips for artificial intelligence. Despite missing its original market cap goal, Kioxia hopes to increase its valuation post-listing by investing in production and profitability.
Nikkei Asia: https://x.gd/v9SKD
▶ Honda's solid-state batteries promise to double EV ranges
22 Nov, 2024
Honda Motor is set to begin manufacturing solid-state batteries for electric vehicles (EVs) on a test production line in Tochigi, Japan, starting in January. The company aims to mass-produce these longer-lasting, higher-range batteries by the late 2020s, with plans to increase EV driving ranges and reduce battery costs by 25% by then. Solid-state batteries, which promise up to 1,000 km per charge by the 2040s, offer improved safety, longer ranges, and are less prone to fires compared to traditional lithium-ion batteries. Honda plans to replace gasoline-powered vehicles by 2040 and is developing its own battery technology to meet this goal. Competitors like Toyota and IM Motors are also advancing in solid-state battery development.
Nikkei Asia: https://x.gd/iX5o5
The EU-Japan Centre currently produces 5 newsletters :
Joint venture established in 1987 by the European Commission (DG GROW) and the Japanese Government (METI) for promoting all forms of industrial, trade and investment cooperation between the EU and Japan.
The EU-Japan Centre’s activities are subject to the allocation of a Grant Agreement by the European Commission for 2024-2026
