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JAPANESE ECONOMIC AND BUSINESS WEEKLY NEWSLETTER: 27 September - 03 October, 2025
The EU Japan Centre is releasing a weekly press review covering Japan's economic and business matters.
JAPANESE ECONOMIC AND BUSINESS WEEKLY NEWSLETTER (27 September – 03 October, 2025)
Outline
1. Economic News
▶ Japan seeks to boost new geothermal power generation
27 Sep, 2026
Photo Source: Kyuden Mirai Energy
Japan’s Ministry of Economy, Trade and Industry plans to add 7.7 GW of geothermal power by 2050 across 118 locations using new technologies that don’t require hot groundwater. Preliminary drilling begins in 2026, with power generation starting in the 2030s. The goal is to lower costs to 12–19 yen/kWh, matching LNG prices. Support measures like subsidies are under consideration. Challenges include environmental concerns and opposition from hot-spring operators.
Nikkei Asia: https://asia.nikkei.com/business/energy/japan-seeks-to-boost-new-geothermal-power-generation
▶ Japanese Govt Sets New Goal of Multipurpose Humanoid Robots in Moonshot Research and Development Program by 2030
29 Sep, 2025
Photo Source: Yomiuri
Japan’s Cabinet Office will set a new goal under its Moonshot R&D Program to develop multipurpose humanoid robots by 2030. These robots are intended for use in homes, factories, and disaster zones, with the aim of eventually performing tasks with human-like capabilities and autonomy. This move comes amid rapid global advances in AI and robotics, especially in the U.S. and China. The Japanese government hopes the initiative will spur private investment, boost AI research, and strengthen Japan’s global competitiveness in robotics. The program, backed by a ¥400 billion fund, previously supported general robotics but will now focus specifically on humanoid robots that can coexist with humans in everyday environments.
Yomiuri: https://japannews.yomiuri.co.jp/science-nature/technology/20250929-283512/
▶ Foreigners in Japan with skilled visa hits record high
30 Sep, 2025
Japan's immigration agency reported a record 336,196 foreign workers under the Specified Skilled Worker (SSW) visa as of June. Most work in food and beverage manufacturing, with Vietnamese making up about 40%. The more advanced SSW No. 2 visa, which offers a path to permanent residency, saw a sharp rise to 3,073 holders, as many SSW No. 1 workers became eligible after five years. Around 50% of SSW No. 1 holders transitioned from the Technical Intern Training Program without exams. The government plans to abolish the trainee program by fiscal 2027 and replace it with a system promoting smooth transitions to SSW status.
Kyodo: https://english.kyodonews.net/articles/-/61891
▶ Japan trade negotiator links $550bn investment in US to economic security
1 Oct, 2025
Photo Source: AP
Japan's top trade negotiator, Ryosei Akazawa, reaffirmed that the $550 billion investment pledge to the U.S.—part of a recent trade deal—will be used to enhance Japan's economic security, with Japan retaining a say in how the funds are allocated. While U.S. officials claim the President selects the projects, Akazawa emphasized Japan’s role and said there’s no fundamental disagreement. The investments—structured as equity, loans, or guarantees—will support key sectors like semiconductors, energy, AI, and pharmaceuticals until January 2029. Funding will come from Japan's foreign exchange special account, with no impact expected on the yen. Akazawa stressed that the U.S. is mainly concerned with timely funding and fair returns, and while the MOU isn’t legally binding, it represents a shared understanding between both countries.
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2. Business News
▶ AEON and JERA Group Launch a New Joint Initiative Aimed at Achieving a Decarbonized Society
26 Sep, 2025
Source: JERA
AEON and JERA Group have partnered to support AEON’s goal of achieving net-zero greenhouse gas emissions by 2040, starting with a project to supply surplus rooftop solar power to AEON Retail stores in Japan’s Chubu region from August 2025. The initiative, managed by JERA Cross, will initially supply 467,000 kWh annually, reducing AEON Retail’s CO₂ emissions by 197 tons per year. This model, which uses existing rooftops to avoid environmental impact, is planned to expand nationwide. AEON and JERA aim to further collaborate on a range of decarbonization solutions as part of their shared commitment to a carbon-neutral society—AEON by 2040 and JERA by 2050.
JERA: https://www.jera.co.jp/en/news/information/20250926_2270
▶ Isuzu and Toyota to develop hydrogen fuel cell bus
29 Sep, 2025
Photo Source: Sota Tanaka/Nikkei
Isuzu Motors and Toyota will co-develop a hydrogen fuel cell bus, based on the Erga EV, with Toyota supplying the fuel cell system. Production will start in fiscal 2026 at their J-Bus joint venture plant. The project aims to cut costs by sharing parts with existing models. Isuzu is also developing a fuel cell truck with Honda, targeting 2027. Hydrogen vehicles suit commercial use due to easier infrastructure needs on fixed routes.
Nikkei Asia: https://asia.nikkei.com/business/automobiles/isuzu-and-toyota-to-develop-hydrogen-fuel-cell-bus
▶ ITOCHU Announces Supply of Low-carbon Methanol Fuel for NYK Line at Port of Ulsan, South Korea
30 Sep, 2025
Photo Source: NYK Group company NYK Bulk & Projects Carriers Ltd
ITOCHU Corporation has supplied low-carbon methanol fuel to NYK Line and conducted a ship-to-ship (STS) bunkering for the Green Future, a methanol dual-fuel bulk carrier, at the Port of Ulsan, South Korea, on September 28. The fuel, made from biomass-derived materials, offers significantly lower GHG emissions over its life cycle compared to conventional marine fuels. As global shipping volumes grow and climate goals tighten, such as the IMO’s 2050 net-zero target and Japan’s 2030/2050 climate commitments, methanol is emerging as a promising alternative fuel due to its ease of handling and compatibility with existing infrastructure. ITOCHU aims to use this opportunity to accelerate the development of a low-carbon fuel supply chain in the maritime industry, aligning with its sustainability-focused management strategy and commitment to the SDGs.
ITOCHU Corporation: https://www.itochu.co.jp/en/news/press/2025/250930.html
▶ Honda unit to provide fuel cell system to U.S. space firm for lunar testing
30 Sep, 2025
Photo Source: Kyodo
American Honda Motor Co. will provide its regenerative fuel cell system to U.S. space firm Astrobotic Technology for lunar testing. The system uses solar energy and water to generate electricity, hydrogen, and oxygen, enabling power storage during lunar days and electricity generation during 14-day lunar nights. The collaboration aims to support long-term lunar missions and survival through harsh lunar conditions. Honda established its Space Development Division in 2024 to strengthen ties with the U.S. space industry.
Kyodo: https://english.kyodonews.net/articles/-/61886
▶ Expansion of Marubeni’s Japan Power Business：
Marubeni Power Retail and UK-based SmartestEnergy Establish New Power Trading Company
1 Oct, 2025
Marubeni Corporation has launched Marubeni Power Trading Co., Ltd., a joint venture between its subsidiaries MPR and SEL, to start power trading operations in Japan. With rising electricity demand and growing renewable energy use, the venture aims to help stabilize power prices and improve supply-demand balance. Combining MPR’s domestic reach and SEL’s trading expertise, the project supports Marubeni’s GC2027 strategy to grow scalable, high-value businesses.
Marubeni: https://www.marubeni.com/en/news/2025/release/00036.html
▶ ANA, U.S. Startup Demonstrate Flying Car at Osaka Expo
1 Oct, 2025
Photo Source: Jiji
ANA Holdings and U.S. startup Joby Aviation conducted the first public demonstration of their flying car (eVTOL) at the Osaka Expo site. The electric aircraft, which seats five including a pilot, flew for about 13 minutes and is designed for quiet urban transport. Joby aims to launch air taxi services in Japan by fiscal 2027, while ANA plans to introduce over 100 units for use in daily transport and disaster response.
Jiji: https://jen.jiji.com/jc/eng?g=ind&k=2025100100522
▶ Mitsubishi Electric completes semiconductor facility in Kumamoto Prefecture
2 Oct, 2025
Photo Source: Mitsubishi Electric
Mitsubishi Electric has completed a new facility in Kikuchi, Kumamoto for producing silicon carbide power semiconductors, with operations starting in November and mass production targeted for 2027. These semiconductors, used in EVs and appliances, offer higher energy efficiency than silicon-based chips. Due to slower EV market growth, parts of the facility's expansion have been postponed to fiscal 2031 and beyond. The six-story, ¥100 billion ($680 million) facility will handle wafer circuit etching, with production plans depending on future market conditions.
Jiji: https://jen.jiji.com/jc/eng?g=ind&k=2025100101085
▶ Biomass Evolue™ using the mass balance method, adopted for Japan Airlines (JAL) cargo handling materials
2 Oct, 2025
Source: Tanix Co., Ltd. and Tsukasa Chemical Industry Co., Ltd.
Mitsui Chemicals is expanding its biomass-derived product line under the BePLAYER™ brand to support a low-carbon society. As part of this effort, Japan Airlines (JAL) will adopt Biomass Evolue™—a biomass-based stretch film produced by Prime Polymer—at domestic airports starting October 2025. This move is expected to reduce CO₂ emissions by around 50 tons annually. The stretch film uses the mass balance method, which enables the allocation of biomass content to products even when mixed with petroleum-based materials, maintaining identical performance. This method plays a crucial role in promoting biomass conversion and advancing carbon neutrality and chemical recycling. As of June 2025, Mitsui Chemicals has applied this approach to over 40 product groups.
Mitsui Chemicals: https://jp.mitsuichemicals.com/en/release/2025/2025_1002_2/index.htm
▶ MHI and QST Complete the First Outer Vertical Target of the Divertor for the ITER Project in Southern France
2 Oct, 2025
Photo Source: MHI
Mitsubishi Heavy Industries (MHI) and Japan's National Institutes for Quantum Science and Technology (QST) have completed the first Outer Vertical Target (OVT), a key component of the ITER fusion reactor's divertor, under construction in France. The OVT, built solely by Japanese manufacturers, is critical for managing heat and particles in the reactor and must withstand extreme conditions, with heat loads up to 20MW/m². MHI began development in 2020 and plans to mass-produce 38 of the 58 OVTs Japan will supply, starting deliveries in fiscal 2025. This achievement highlights Japan’s growing role in advancing fusion energy through the ITER project.
Mitsubishi Heavy Industries: https://www.mhi.com/news/25100201.html
▶ Japan's Hitachi, Riken ink deal to build silicon quantum computer
3 Oct, 2025
Photo Source: Hitachi
Hitachi, Japan's Riken institute, and Belgium's Imec have signed an MoU to develop a silicon-based quantum computer, aiming for commercial use. A prototype is planned for fiscal 2027, with a 100-qubit model in 2028 and a 1,000-qubit version by 2030. The system, accessible via the cloud, will use error correction for accuracy. Silicon qubits allow scalability and compatibility with existing semiconductor tech, though precise control remains challenging. Hitachi aims for business-ready quantum computing by 2035.
Nikkei Asia: https://asia.nikkei.com/business/technology/japan-s-hitachi-riken-ink-deal-to-build-silicon-quantum-computer
▶ Mitsubishi Heavy Industries Thermal Systems Has Launched "ETI-W"
3 Oct, 2025
Photo Source: MHI
Mitsubishi Heavy Industries Thermal Systems has launched the ETI-W, a new centrifugal heat pump for the Japanese market that uses waste heat from factory processes to supply hot water up to 90℃, with a large capacity of 640 kW. Designed for high-temperature industrial applications, the ETI-W achieves a high COP of 4.01, delivering strong energy savings. Importantly, the system uses the low-impact refrigerant HFO-1233zd(E), which has a global warming potential (GWP) of just 1 and does not deplete the ozone layer, significantly reducing environmental impact. By replacing conventional boilers, the ETI-W helps cut CO₂ emissions and supports decarbonization in industries such as electronics, automotive, food, and pharmaceuticals. This product expands MHI’s heat pump lineup and reinforces its commitment to developing eco-friendly technologies that contribute to energy efficiency and global CO₂ reduction.
Mitsubishi Heavy Industries: https://www.mhi.com/news/25100302.html
Published: October 2025
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