Long Term Vision and Mid-Term Management Plan

In order to contribute to the realization of a sustainable society, it is important for us to further innovate the technologies we have developed for storing and using electricity and to widely implement and operate these technologies in public infrastructure in order to solve social issues. In order to realize a sustainable society and to realize sustainable growth of our company, we have reviewed the "Management Vision and Management Policies" that we had previously established, and have now formulated a new "Policy on Sustainability Management Policy".

Vision 2035, which we have announced this time, shows "Vision of GS Yuasa in 2035" in order to achieve "Innovation and Growth" for the next 100 years, based on the DNA of our founders and the knowledge we have accumulated over the past 100 years.

Achieving Vision 2035 requires two elements, some innovating and some eternal. In terms of elements that should not be changed are our philosophy and a commitment to technical innovation. Our philosophy “Innovation and Growth” inherited from the Company’s founders should not be changed as well as a commitment to technical innovation, namely the sustainable development of energy storage technology that has been polished up for more than 100 years. Conversely, we seek to innovate in business areas and in the value we provide. In the past, we have offered “mono,” that is “products” to customers, in the form of lead-acid batteries, lithium-ion batteries, power supply systems, etc. Going forward, in addition to products, we also want to offer solutions and services in the domains of mobility and public infrastructure, and aim to become a comprehensive device company.

Here is a diagram showing the innovation and growth of our business toward achieving Vision 2035. Automotive Battery segment will be further improving profit margins, securing profits which we intend to use as investment capital for the growth domains of mobility and public infrastructure. Regarding the Automotive Lithium-ion battery segment, sales of lithium-ion batteries for HEVs are expected to increase through to around 2035, after which they will see a gradual decline. We believe there is and will continue to be strong demand in the Industrial Battery and Power Supply segment, centered around backup batteries and power supplies, as these play a role in the maintenance of public infrastructure. Toward 2035 and 2050, we will develop high-capacity, high-output lithium-ion batteries by utilizing our joint venture with Honda Motor Co., Ltd. and apply to batteries for BEVs and the regular field, centered around batteries for ESS. In terms of new initiatives, starting around 2035, we would like to nurture a new business contributing to society, and utilizing GS Yuasa’s technology and expertise acquired over the years.

Liquid electrolyte lithium-ion batteries as they currently exist will evolve into batteries free from the use of rare metals, possessing longer lives, and capable of being recycled. As such, we will continue to develop more sustainable batteries with more consideration for resources and environmental issues. Regarding all-solid-state batteries, we are aiming to achieve higher energy density, and will be developing batteries with distinctive features, based on our unique solid electrolyte technology. We will be carrying out the development of silicon-based anodes, as opposed to carbon-based anodes as they currently exist, and furthermore, through the development of metal anode batteries, we will aim to achieve higher energy densities. In terms of cathode technology, sulfur presents several advantages, such as allowing for high-performance batteries. Reserves of this resource are also plentiful, and it’s also a low-cost material.

■Strategy by Region

■Strategy of Regular Field

As the introduction of renewable energy expands, the importance of storage batteries for controlling fluctuations and adjusting supply and demand is expanding. We will enhance the value we provide to our customers and increase our presence in the regular field market through our all-in-one business, in which we offer power conditioners and storage batteries as a package and can provide everything from products to installation and maintenance in an integrated system.

■Strategy of batteries for BEVs

By using the results of research and development at Honda・GS Yuasa EV Battery R&D Co., Ltd., a new company established with Honda Motor, we plan to start operation of a production line in April 2027 and start full-scale mass production in October of that year for mass production of lithium-ion batteries for BEVs, the pillar of the mobility business. We will supply the batteries mainly to Japanese automakers, and by launching a series of production lines through 2030, the combined production capacity of GS Yuasa, Honda Motor, and Blue Energy will reach 20 GWh/year. We will later seek to expand production capacity within the GS Yuasa Group alone to more than 20 GWh/year by 2035.

■Strategy of batteries for HEVs

We expect that during the term of the Sixth Mid-Term Management Plan, sales volume of batteries for HEVs will increase, and we plan to increase Blue Energy’s production capacity to 70 million cells annually in fiscal 2025.

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■Financial Policy