TOPPAN Holdings Inc. (TYO: 7911) and Toyo Seikan Co., Ltd. (Toyo Seikan) are set to execute a letter of intent (LOI) for forming a joint venture focused on producing and marketing packaging solutions for automotive lithium-ion batteries in Sweden. The joint venture plans to commence manufacturing operations in fiscal 2026 or beyond.

In 2011, TOPPAN Holdings and Toyo Seikan established T&T Enertechno Co., Ltd. as a joint venture to manufacture packaging for lithium-ion batteries used in smartphones and electric vehicles (EVs) in Japan.

With global expansion in EV sales aligning with carbon neutrality goals, efforts to promote EV adoption are underway in the European Union, which has set a CO2 reduction target requiring all new cars to be zero-emission by 2035. This trend is increasing demand for square cans used in lithium-ion battery packaging among European automakers. However, to enhance transportation efficiency, there is a growing preference for production facilities closer to the point of use.

As a result, TOPPAN and Toyo Seikan will sign an LOI to establish a joint venture in Sweden, aiming to bolster their supply chain for lithium-ion battery packaging.

A new joint venture, yet to be named, is set to be established in Sweden with plans for launch in January 2025. Specializing in the manufacturing and sale of packaging for lithium-ion batteries used in automobiles, the venture aims to commence production in fiscal 2026 or later. Toyo Seikan will hold a majority ownership stake of 51%, with TOPPAN Holdings holding the remaining 49%. The total investment for the project is estimated at approximately ¥11 billion, although specific details regarding the company name, representative, and capitalization are yet to be finalized.

The schedule for the joint venture between TOPPAN Holdings Inc. and Toyo Seikan Co., Ltd. outlines key milestones beginning with the planned signing of the joint venture agreement in August 2024. Following this, the establishment of the joint venture is scheduled for January 2025, marking the official start of preparations for operations. The launch of manufacturing and sales operations for packaging used in lithium-ion batteries for automobiles is targeted for fiscal 2026 or later, aligning with strategic timelines for market entry and production readiness.

After forming the joint venture, TOPPAN and Toyo Seikan intend to begin manufacturing operations in Sweden (Europe) starting in fiscal year 2026 or beyond. The companies aspire to support carbon neutrality by focusing on the production of lithium-ion batteries for electric vehicles (EVs).