Weekly Japanese Industry and Policy News (March 1- March 7, 2024)

The EU-Japan Centre is pleased to start a new weekly service by publishing brief summary of the latest information from the Japanese governmental organizations & private companies/organizations. A couple of minutes reading to be informed about what is happening in Japan's policy, economy, EU-Japan relations, and innovation.

*Information is deemed correct at the time of release. 

Toshiba signs contract with Belgian company for hydrogen production equipment technology
Toshiba announced on February 29 that it has signed a licensing agreement with material technology developer Bekaert (Belgium) for core technology for hydrogen production equipment. The contract fee associated with the license is not disclosed. Toshiba will develop and manufacture the core components used in the equipment, and will grant Bekaert overseas manufacturing and sales rights. Bekaert will start producing and selling parts by 2025. MEA is a necessary component to electrolyze water and create hydrogen. Using special membrane technology, it increases the reaction during electrolysis while reducing the use of rare metals required for decomposition. Under this license agreement, Bekaert will manufacture MEA at its factory in Belgium and sell it mainly in Europe. Bekaert is a world-leading manufacturer and developer of titanium nonwoven fabric, a material used in MEAs.

Toshiba website:
https://www.global.toshiba/ww/news/energy/2024/02/news-20240229-01.html

Murata Manufacturing reduces fossil fuel consumption by up to 53% during exhaust gas treatment
Murata Manufacturing Co., Ltd. announced on February 29 that it has developed the world's first heat-resistant ceramic catalyst material for exhaust gas treatment by applying its ceramic capacitor material design technology. By using a catalyst made from the same material, fossil fuel consumption can be reduced by up to 53% when treating exhaust gases such as VOCs. The material developed by the company has an active element embedded within its highly heat-resistant ceramic structure that accelerates the decomposition reaction of VOCs. This makes it possible to apply it to devices where conventional catalysts could not be used, and it does not deteriorate even in high-temperature environments with a combustion chamber temperature of 850°C, and can be used safely and efficiently even when the temperature rises due to concentration fluctuations. The material does not contain any precious metals and its production is not affected by market price fluctuations.

Murata website (in Japanese):
https://www.murata.com/ja-jp/news/other/other/2024/0229

JOGMEC signs joint copper exploration agreement in Ecuador
JOGMEC announced on March 1 that it has signed an agreement with Adventus, a Canadian junior exploration company, to conduct joint exploration in the Tres Picachos region of Ecuador. In addition to the large-scale Mirador copper mine, the Trespicachos region is located within a copper belt where new copper deposits are being discovered one after another. In the Trespicachos area, the distribution of copper-rich rocks has been confirmed through exploration activities, and it is hoped that future exploration will lead to the discovery of economically viable copper deposits.

Ecuador significantly improved its investment environment in the 2010s, promoting investment from overseas in resource development projects, and in 2019, two large-scale mines with 100% foreign capital started production. It is attracting a lot of attention as a mining country. JOGMEC entered the Orquideas region in December 2021 as its first project in the country, and has conducted drilling surveys and completed evaluations in that region, as well as exploring candidates for a new JV exploration project. This is the second joint exploration project between the two companies.

JOGMEC website (in japanese):
https://www.jogmec.go.jp/news/release/news_08_00043.html

Mitsubishi Corporation develops lithium mine in North America, moves away from China through local refining
Mitsubishi Corporation announced on March 5 that it will participate in the development of a lithium mine in North America. The company will develop the business in a joint venture with a Canadian mining exploration company and begin production in 2027. The company will also establish a local refining base and establish a system that can handle everything from mine development to ore refining in North America. This is the first Japanese company to produce lithium in North America. There has been a growing movement to establish new supply networks in preparation for the US-China split.

Lithium is mainly produced from brine from salt lakes and from ore. Salt lakes are concentrated in areas with high geopolitical risks, such as China and Chile. Most of the ore is located in Australia and Canada, but many of the refinery plants that process it for use in batteries are in China. It is said that half of the new refinery plant plans to be built by 2030 will be located in China, posing an economic security issue.

The plan is for Mitsubishi Corporation to invest as early as this spring in a new company to be established by Frontier Lithium, a Canadian company with interests in lithium mining. The lithium mine the company is considering participating in is located in Ontario. With over 58 million tons of resources, it will be the largest lithium mine in which a Japanese company has an interest. A study will be carried out with a view to commercialization by 2025, and production will begin in 2027, starting with industrial products such as glass and ceramics. The company aims to begin production in 2030 for batteries used in electric vehicles (EVs) and storage batteries.

Mitsubishi Corporation website:
https://www.mitsubishicorp.com/jp/en/pr/archive/2024/html/0000053204.html

Global PC demand will increase by 0.4% in 2024, recovering due to replacement demand
The Japan Electronics and Information Technology Industries Association (JEITA) announced on February 29 that the global demand for personal computers (PCs) in 2024 is expected to increase by 0.4% from the previous year to 238 million units. A recovery is expected due to the end of support for Microsoft's operating system Windows 10 in 2025 and demand for replacement PCs for working from home. JEITA predicts that demand will remain strong and continue to increase after 2024, with a 1.7% increase to 242 million units in 2025 and a 0.2% increase to 242.5 million units in 2026. On the other hand, sales in 2023 were 237 million units, down 9.4% from the previous year. The decline was a reaction to pre-empting demand due to the spread of working from home due to the COVID-19 pandemic.

JEITA also announced that global demand for televisions in 2024 is expected to decrease by 0.6% from the previous year to 208.67 million units. In emerging countries, demand is expected to increase slightly due to economic growth, but it is expected to remain almost flat until 2028 as the proportion of video viewing on smartphones will increase due to an increase in video content. In 2023, sales were 210.01 million units, down 2% from the previous year. As the effects of the COVID-19 pandemic subsided, people spent less time at home and watched more videos on smartphones.

JEITA website (in Japanese):
https://www.jeita.or.jp/japanese/topics/2024/0229.pdf

JAPEX creates new businesses such as CCS/CCUS and blue hydrogen in Canada
Japan Petroleum Exploration Agency (JAPEX) announced on March 4 that it will begin collaboration with Invest Alberta (IAC), the investment attraction agency of the Government of Alberta, Canada, with the aim of creating new businesses in the decarbonization field. In addition to CCS/CCUS, it aims to create businesses in the fields of BECCS (Bio-Energy with Carbon dioxide Capture and Storage), blue hydrogen, and ammonia. Alberta is the center of Canada's energy market. IAC provides support tailored to individual needs for companies and investors aiming to start a business or create or expand a business in the state. JAPEX will utilize the company expertise in CCS/CCUS and E&P business in Japan and overseas to create a business that will contribute to net zero CO2 emissions. BECCS is a technology that combines biomass power generation and CCS. By capturing and storing the CO2 generated during combustion, it is possible to reduce the amount of CO2 emitted during power generation to virtually zero.

JAPEX website:
https://www.japex.co.jp/en/news/detail/20240304_01/

Itochu and Softbank invest in U.S. nuclear fusion power generation startup
Itochu Corporation and Softbank announced on March 7 that they have invested in Blue Laser Fusion (BLF), a US startup that produces nuclear fusion power. The company aims to enable stable power generation using a unique laser and commercialize it by 2030. BLF was founded in November 2022. Including venture capital (VC), the company has raised $37.5 million in just over a year since its founding. Itochu and SoftBank will be the first investors in a Japanese operating company. BLF's CEO is Shuji Nakamura, who won the Nobel Prize in Physics in 2014 for the development of blue light-emitting diodes (LEDs). The company established a Japanese subsidiary in February of this year and is collaborating with domestic companies and research institutions such as Osaka University. BLF is working on a method to trigger a nuclear fusion reaction by applying a powerful laser to fuel. A newly developed unique laser will address the issue of nuclear fusion, which cannot extract energy continuously.

Itochu website:
https://www.itochu.co.jp/en/news/press/2024/240307.html

Google establishes cyber defense base in Tokyo, first in Asia Pacific
Google announced on March 7 that it has opened its first cyber defense base in the Asia-Pacific region in Japan. It will collaborate with the government, companies, universities, and others to research countermeasures and develop human resources. In Japan, there is growing concern about unauthorized access to government offices and companies from countries such as China and North Korea. Google will use Japan as a hub to improve the cyber defense capabilities of the entire region. The company's engineers will share the latest attack techniques with corporate personnel and other personnel, promoting the development of human resources who are knowledgeable about defense technology and cyber defense. In addition to Japan, engineers from companies from India, Australia, South Korea, and Southeast Asian countries will be invited to research countermeasures against cyber-attacks. Google does not receive compensation for joint research. Google established its first overseas subsidiary in Japan in 2001, and there are many researchers in the cyber defense field.

Google Japan blog (in Japanese):
https://japan.googleblog.com/