■Description / Scope

Outline of the Research Contents

• Market size for rechargeable batteries for ESS in Japan (in kwh): 2010 - 2011 (past records), 2012 (estimate), 2013 - 2015 and 2020 (forecast)
  • Market size by application (in kwh)
  • Market size by type of rechargeable batteries (in kwh)
• Activity and strategy trends of manufactureres of rechargeble batteries for ESS in Japan
  • Strategies, products, capacity, performance, etc.
• Examples of ESS applications in Japan
  • Introduction of examples in Japan where the market was created earlier than anywhere else in the world

Stationary (ESS) Storage Battery Products Covered in This Report:

1. UPS/Emergency Power (Backup Applications):

• Business Applications (Information Service, Finance, Medical Care, News Report, etc.)
• Infrastructure Applications (Power Plant, Substation, Water and Sewage Facilities, Mobile Communication Base Station, etc.)

This includes conventional UPS (uninterruptible power systems capable of supplying power for about 10 minutes, and instantaneous voltage drop compensation devices).
Though depending on the demand field, there are cases that demand more power supply capacity than before, due to the increasing power demand at data centers in urban areas, and the need for alternative power supplies in the event of a natural disaster-induced power outage.

2. Peak-Shift/Peak-Cut and Backup Applications

• General Home Applications
• Business Applications (Private Companies, Local Governments, etc.)

This is for peak-shift/peak-cut applications using nighttime power storage and in combination with solar panels.
This also plays a role of alternative power supplies in the event of a natural disaster-induced power outage.
(*General home applications are for single-family houses. Condominiums are counted as one of the business applications.)
(*Applications to the regenerative energy storage system installed in railroad station buildings are included in business applications.)

3. Electric Vehicle Charging System (EV)

The combination of electric vehicle charging systems, whose infrastructure is being developed, with solar panels enables quick charging.
This system also supplies power to specific electrical load in emergency.

4. Grid Applications (Grid-connected Power Stabilization Applications)

The introduction of renewable energy to grid-connected power realizes power and frequency stabilization.

■Table of Contents

Chapter 1

Outlook of Battery Market for Energy Storage Systems (ESS)

• It is like groping for “what ESS should be like" in the dark
• Systems to build with users are the first step
• Potential market growth of 1,260,000kWh in FY2015 and over 9 times as much in FY2020
• Business-use power storage will continue growing in and after FY2013, thanks to the government policies to back up such efforts with subsidies and support funds, and as a result of the replacement of existing storage batteries
• Housing makers' package sale will expand storage batteries in general home applications
• Local government subsidy systems spur fast charging systems
• The storage battery market is on the rise without a doubt but it is difficult to make a clear long-term forecast
• Figure out "optimum specifications" and "best prices" side by side with users within the next few years

Chapter 2

Lead-Acid Battery Market

• With the aim of capturing the demand of new markets, suppliers are pushing along the commercialization and development of lead-acid batteries for cycle use
• Lead-acid batteries for UPS devices that still account for 90 percent of the market are dwindling
• Explore future growth opportunities through activities for expanded applications in new markets
• Lead-acid batteries for energy storage systems are not matured products, but rather innovative lead-acid batteries will emerge down the road

LIB Market

• The most promising battery for new markets of energy storage systems
• Many players are participating in the market in anticipation of its growth in the future, driving intense competition
• LIB-based power storage systems for general home applications are likely to grow sharply in FY2012 as a result of housing makers' sales campaign
• It is hoped that the subsidy systems will spur the growth in the latter half of FY2012
• The execution of Green New Deal Fund will help strengthen the presence of business-use storage battery system market over FY2014-FY2015
• The employment of LIB-based charger systems that double as emergency infrastructures will increase at public facilities
• It is significant to offer a line-up of "high-end, medium-end, and low-end" power storage products with the best choice of LIBs
• The failure to capture near-term power storage needs would see no growth after the subsidy expires

Nickel-Metal Hydride Battery Market

• With its excellent heat radiation performance and unique structure that offers high C-rate performance, "Gigacell" developed by Kawasaki Heavy Industries is taking a lead in commercializing this type of battery
• In anticipation of grid-connected power applications, Kawasaki Heavy Industries focuses its efforts on railway systems in the near term
• Toyota Motor started demonstration experiments for converting used batteries of hybrid electric vehicles to other applications
• The market size in FY2012 will be several hundred million JPY mainly for energy-saving effects in railway systems
• The market will double or even quadruple between FY2012 and FY2015

Redox Flow Battery Market

• The momentum of aggressive introduction of natural energy-based power generation serves as a tail wind
• Multiple battery suppliers may enter the market in the very near future
• As a result of NEDO-led "Moonlight Project" (1978-1992)
• Full-scale commercialization of this battery achieved in 2001 for the first time in the world
• The recent mainstream electrolyte solution is vanadium-based
• Footprint is relatively large despite many advantages as a large-capacity storage battery
• Vanadium-related cost accounts for nearly half the total cost
• Raw material procurement routes and electrolyte solution processing techniques are the key to cost reductions
• The participation of Sumitomo Electric Industries accelerates market expansion for grid-connected and stabilized renewable energy-based power generation

NaS Battery Market

• NGK Insulators successfully commercialized NaS batteries, which are widely used with its trademark registered
• Efforts to develop room-temperature rechargeable NaS batteries under way
• Various breakthrough accomplishments led to a full-scale commercialization of NaS batteries in 2003
• Safety measures and cost reduction efforts will be stepped up in the wake of a fire incident
• NaS battery market will rely on larger projects than before
• Stepped-up involvement in the future in overseas markets where there is large potential demand

Chapter 3

GS Yuasa International Ltd.

• The development of new LIB cells accelerates proposals for the battery market of energy storage systems
• Lead-acid batteries continue to be its core business, with emphasis on LIBs as a new mid-and-long term growth area
• GS Yuasa built one of the world's largest LIB production systems
• High-performance LIB cell "LEV50N" developed for automotive applications
• Development of new lead-acid battery cells with improved cycle life under way
• GS Yuasa proposes LIB-based power supply units for peak-shift/peak-cut and long-hour backup applications
• The shipment of lead-acid batteries, including the sale of cell modules and power supply units, increases at a constant growth rate
• LIBs will continue to grow through aggressive proposals for peak-cut and disaster prevention power storage systems and PV-EV systems

Shin-Kobe Electric Machinery Co., Ltd.

• The goal is a comprehensive power storage device and system maker
• The four power storage devices and the synergy among Hitachi Group companies to explore the battery market for energy storage systems
• Long-life lead-acid battery "LL series" realized 17-year-long expected service life for wind power applications (LL-W type)
• Storage battery systems proven at large-scale wind power facilities (wind farms)
• High-power, cylinder-type LIB cells to be released, with efforts for cost reductions under way
• Expanded solutions offered by power storage systems including Sefla System
• The production capacity of LL type batteries to be increased
• The investments in LIB cell production facilities under way as planned
• Peak-shift/peak-cut and backup applications of both lead-acid batteries and LIBs are expected to lead the home market in the future

Furukawa Battery Co., Ltd.

• Reinforcing its efforts in power storage business including smart grids
• Stepping up its position from a battery maker to an electrical equipment manufacturer in anticipation of future business expansion
• Proposing new products for new markets: cycle use-dedicated "FCP-1000 type" batteries, capacitor-integrated lead-acid battery "Ultra Battery" products, and industrial LIB products
• The creation of new demand for UPS devices mainly through periodic maintenance services increases the shipment at a slow pace over the next few years
• Storage batteries for peak-shift/peak-cut applications are expected to gradually take off after FY2012

Toshiba Corporation

• Armed with its secondary battery SCiBTM and the synergy among group companies, Toshiba responds to a wide range of power storage needs
• Social Infrastructure Systems Company is set up to promote infrastructure battery business
• SCiBTM batteries have competitive advantages over LIBs such as longer cycle life and better safety performance, covering a broad range of energy storage applications
• Proposals on the smallto large-scale SCiBTM-based energy storage system "Smart Battery"
• New large-scale, high-output grid-connected power storage system "eneGoon" released for general home applications
• The production capacity at its Kashiwazaki Plant to be expanded to 2 million cells/month in FY2013 or later
• Large-scale systems for demonstration experiments, emergency power supply units for elevators, and home power storage systems
• Continue to expand the shipment of SCiB™ batteries for energy storage systems by widening the scope of proposals

NEC Corporation

• Strong synergy between ICT technology and LIB business
• In addition to LIBs mounted on the Nissan LEAF, power storage related products expand future businesses
• NEC announced of new next-generation manganese-based LIBs that provide higher in capacity and lighter in weight
• Production-model home power storage systems announced in March 2012
• High cost performance that overwhelms competitors achieved by using the technology developed for automotive battery cells
• Participating in demonstration experiments for medium-to-large size energy storage systems
• With a high-volume production model commercialized, shipments in FY2012 are expected to significantly increase

Sony Corporation

• Offering power storage solutions with enhanced safety and reliability
• Received an order from the Tokyo Fire Department for power storage systems
• Pursuing entertaining flavor in combination with HEMS
• Expanded lineup of new series business-use storage batteries that are connectable to distribution panels and provide enhanced operability
• Improvement in cost competitiveness by transferring LIB assembly processes overseas
• Adoption broadcast stations and offices for backup power applications

Panasonic Corporation

• Developing power storage solutions taking advantage of group synergy
• Business restructuring in January 2012 involving Panasonic Electric Works and SANYO Electric shifted the company to a new corporate system
• Proactive enhancement of storage battery product lineup for business, home, and public & industrial applications scheduled from 2011 to 2012
• Suzhou Plant in China started cell production In July 2012, aiming for stronger cost competitiveness
• The combination of proprietary solar panel "HIT series" and storage batteries accelerates installations at stores

ELIIY Power Co., Ltd.

• Enhancing the Proposal Area with Expanded Product Line-up
• Lithium iron phosphate is adopted as the positive-electrode material, and individual products have obtained international safety approval for further improved reliability
• POWER YIILE PLUS optimized for residential use has been newly marketed
• Plans to market a new power storage system for business use
• Utilizing the past delivery of business-use large power storage systems
• Launch of new factory to improve the production capacity to 1.2 million cells/year (approx. 180 thousand kWh) in 2013
• Substantial growth expected to continue in 2012 and later due to cost competitiveness is added to cumulative sales of more than two thousand units, superiority in safety and performance

IHI Corporation

• Mass Production of Standardized LIB Modules Started, Adoption by Public Institutions
• IHI delivered power storage systems to the Tokyo Fire Department,
• Aim for further business growth by strengthening supply chain
• Standard lineup of MonoBlock modules based on A123 Systems' LIB cells
• Pre-mass production of 100 units/month started in 2012, scheduled to boost to 10,000 units/year in 2013
• Successful shipment targeting public projects

ENAX, Inc.

• Offering Power Storage Products Meeting Customer Demand with Optimized Solutions
• Collaboration with Taiwan PSI for lithium-iron-phosphate-based LIBs
• Mobile power storage system X-Battery PBAC series was newly released for supporting corporate BCPs
• Top-class cost performance in the industry has been achieved by optimizing cell adoption and system design
• Domestic and International production bases reinforced in 2012, and the establishment of recycle system started
• Increased sales of PBAC series is expected to boost FY2012 results to significantly exceed the previous year

Mitsubishi Heavy Industries, Ltd.

• Promotes the Commercialization and Proposal of Diverse Large LIB Power Storage Systems
• Completed the development of Japan's first Class MW container type LIB power storage system
• Obtained SII certification as a large custom storage battery manufacturer in September 2012
• A wide selection of high-capacity type large LIB cells offered for batteries of energy storage systems
• Container type system has been delivered for demonstration experiments of grid systems
• In Japan, there are also needs for temporary power supply units in emergency situations
• Mass production demonstration factory has been in operation in Nagasaki Shipyard & Machinery Works since 2010.
• After the Great East Japan Earthquake, inquiries for backup-dedicated products have increased for business use in Japan

Furukawa Co., Ltd.

• Initiative in MWh Class Storage Battery Market in Collaboration with MEGABESS in Korea
• In addition to their own engineering power, the support system and sales network of Furukawa Group are utilized
• Three classes of BESS are offered by capacity
• Optimum design attained based on two types of modules
• Enhanced safety by Furukawa's know-how, their BMS techniques keep ahead of competitors
• Both safety and cost performance have been achieved in kWh unit price

Nichicon Corporation

• New Entry to Power Storage Business Utilizing the Know-How in Energy Management
• Launched a top-class home power storage system in power storage capacity by utilizing LIBs from Samsung SDI in Korea
• Proposal of custom-made business-use power storage systems suitable for customer needs, for example, in a combination of electric double layer capacitors and LIBs
• With satisfactory inquiries both for home and business, shipping increase is expected from the second half of 2012 to 2013 onward

Seiko Electric Co., Ltd.

• Pioneer in Home Power Storage Systems
• Expanded storage battery products from lead-acid batteries to LIBs
• Having a cumulative sales record of more than 1,300 units, a specialized team in storage batteries has been transferred to the Tokyo Branch with the aim of further business expansion
• New lineup of lead-acid power storage products to capture changing market needs
• Manufacturing of power storage systems that enables reuse of EV LIBs Started in 2012
• Lead-acid battery power storage systems marked rapid growth in 2011, a 130% range increase over previous year expected in 2012 onward
• LIB power storage systems expected for steady growth since its takeoff in 2011

Inaba Denki Sangyo Co., Ltd.

• Storage battery business using total functional power led from the aspect of trading company and of manufacturer
• Transportable storage battery G-LiFe Save equipped with lithium-iron-phosphate-based LIBs
• Certified for subsidy in September 2012
• Shipment in 2012 expected to be about four times as larger than previous year

JFE Engineering Corporation

• Pioneer in storage-battery-based quick chargers offers a new value in charging stands
• Offering a product with two benefits: "Power supply for emergency" and "quick charging infrastructure"
• Only quick charger with storage batteries that supports the CHAdeMO standard
• A new line-up to be added with refined cabinet size and cost responding to changes in market environment
• Super quick charger type enables 80% charges to EV in eight minutes
• JFE Engineering focuses on demonstration to prove superiority of RAPIDS first with commercial vehicles for future business
• Demonstration with Cosmo Oil started, aiming for introduction at hundreds of domestic locations in around FY2015

Kawasaki Heavy Industries, Ltd.

• Cultivating the demand utilizing the characteristics of the Gigacell
• Strength in the synergy with conventional business, such as rolling stock and energy/power plants
• Gigacell adopts original bipolar 3D structure
• Optimization of product lineup on the way
• Aim of cost reduction
• Power storage systems for railways drive KHI’s growth in the short term view,
• Deployment used for stabilize power quality

Sumitomo Electric Industries, Ltd.

• Establishment of Power System R&D Laboratories Strengthens the R&D Structure for Redox Flow Batteries
• New business development starts from 2014, after various experimental demonstrations using MW-class large-scale power storage systems
• Intensive efforts to reduce cost for attaining top-class price advantage by around 2015

NGK Insulators, Ltd.

• New Production of NAS Batteries Scheduled to be Restarted in Second Half of 2012
• NAS batteries business started in 2002
• Total capacity in use reached 305,000 kW in September 2011
• Majority in 2012 were overseas projects
• Demand for electricity supply grids will be developed in addition to conventional major areas