Japan eyes strategic investments in India’s EV and battery supply chain to counter China’s stranglehold

The proposed capital infusion could back joint ventures, technology transfers and new processing facilities, positioning India as a pivotal player in Asia’s alternative supply chain matrix 
| Photo Credit:
Fahroni

In a decisive geopolitical and economic manoeuvre, Japan is lining up probable investments of $100–400 million (₹860-3,500 crore) across India’s electric vehicle, battery and recycling sectors, multiple sources present in trade meetings over the past two days told businessline.

The move is part of Tokyo’s strategy to dismantle China’s stranglehold over global supply chains of lithium-ion batteries, critical minerals, and rare earth magnets — essential ingredients in the world’s clean-tech and EV revolution.

People present said Japanese trade and investment agencies are actively scouting Indian partners in EV manufacturing, cell production, mineral processing and recycling ventures. Funding arrangements were discussed too, with some of the private equity players from Japan being present.

The proposed capital infusion could back joint ventures, technology transfers and new processing facilities, positioning India as a pivotal player in Asia’s alternative supply chain matrix. Strategic investments are being explored too.

The Quad recently released a joint statement stating they were “deeply concerned” about the “abrupt constriction and future reliability of key supply chains, specifically for critical minerals”.

For instance, at a meeting, one of the Japanese companies expressed willingness for partnerships in catalytic converter (they clean exhaust fumes in internal combustion engine vehicles) recycling – which would give companies access to platinum and palladium. Platinum finds usage in hydrogen fuel cells, used extensively in EVs. One of the Indian firms present there confirmed having the required tech-access to go ahead on the same.

70 companies present

Over the past 48 hours, senior Japanese government officials, top brass from leading battery-makers, automobile manufacturers and even PE firms (including subsidiary companies of these auto-majors) have held a flurry of high-level, closed-door meetings and conferences, with India’s biggest conglomerates, EV-makers, battery firms, and recyclers. Nearly 70 companies across the two Asian nations have participated.

Also present in these meetings – which took place at the Japanese Embassy office – were some of the key line Ministry officials from India, and ARCI – International Advanced Research Centre for Powder Metallurgy and New Materials.

Amongst the big Indian names present, were Maruti Suzuki, Tata, Honda, to name a few, battery-makers and recyclers like Attero and Lohum. Tata Capital was also present while conglomerates included the likes of Vedanta. Japanese officials were scheduled to visit Lohum’s facility in Uttar Pradesh too.

From the Japanese side, there were Members of the Battery Association for Supply Chain (BASC) – a Japanese industry group, and names that included the likes of Mitsubishi, Sumitomo, Diakin Chemical Southeast Asia, Hanwa, among others.

Attero’s Nitin Gupta, CEO and Co-Founder, told businessline: “Current geopolitics create significant opportunities for India and Japan to collaborate on critical minerals and rare earth magnets.”

“There was a conference organised by Ministry of Finance-Japan, METI (Ministry of Economy Trade and Industry) and JETRO (Japan External Trade Organsiation) at the Embassy of Japan on the subject of battery and critical minerals ecosystem. Maruti Suzuki also participated,” Rahul Bharti, senior executive officer, corporate affairs, Maruti Suzuki, said.

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Published on July 3, 2025