#Japan #Tokyo #electric vehicles #circular economy #JA Mitsui Lease

Introduction to the Initiative

On November 17, 2025, JA Mitsui Lease Corp., along with JA Mitsui Lease Auto Corp, Denchi Co., and Japan Auto Recycling Co., announced the launch of a new service designed for the diagnosis and discharge of batteries from electric vehicles (EVs), including hybrid vehicles (HVs). This initiative comes at a time when the importance of a circular economy, particularly in battery reuse and recycling, is greater than ever.

Importance of the Circular Economy

The proliferation of electric and hybrid vehicles has underscored the necessity for effective battery management. According to the Ministry of Economy, Trade, and Industry, the domestic market for batteries is projected to reach about 80 trillion yen by 2030. Yet, the lack of standardized evaluation methods for used batteries represents a significant barrier to the widespread adoption of EVs. As a result, the resale value of used EVs pales in comparison to traditional gasoline vehicles, hindering the growth of the market.

Moreover, there's a national urgency to secure rare metals such as lithium and cobalt used in EV batteries. Many used EVs end up being exported rather than recycled within Japan, primarily due to inadequate systems for evaluating and managing these batteries. In recycling facilities, disassembled battery packs often accumulate due to improper evaluation and processing measures, creating fire hazards and space shortages.

Overview of the Pilot Project

To address these challenges, MITUI's group, Denchi, and Japan Auto Recycling have completed a joint demonstration project aimed at creating a battery diagnosis and discharge service. The pilot project utilized EVs and HVs that had reached the end of their leasing period or were decommissioned. Utilizing CHAdeMO connectors, the team performed diagnostic tests and discharge processes both on-installed batteries and battery packs removed during disassembly.

The services provided by Denchi allow for quick, non-destructive battery diagnostics through portable equipment. This means that evaluations can be conducted at various locations, including recycling facilities, used car dealerships, and maintenance shops. Employing electrochemical impedance spectroscopy technology enables accurate measurement of a battery's condition, including degradation levels not captured by typical State of Health (SOH) metrics. This precise evaluation not only facilitates reuse and repurposing but also promotes safe transportation and storage practices by offering concomitant discharge services.

Role of Each Company

• - JA Mitsui Lease Group: Oversaw the planning and coordination for the pilot project, emphasizing the development of innovative solutions.
• - Denchi: Focused on the data analysis and service development utilizing diagnostic and discharge technologies, also contributed to the project planning.
• - Japan Auto Recycling: Provided field facilities and offered support in planning the demonstration experiment.

Future Outlook

The implementation of this service is geared towards accurately assessing battery performance and degradation, which will enhance decision-making around reuse and recycling processes, while simultaneously minimizing fire risks through systematic discharge procedures. Moving forward, the consortium is committed to refining diagnosis and discharge technologies and aims to establish a service network across Japan.

Company Backgrounds

JA Mitsui Lease Corporation
Location: Tokyo, Chuo-ku, Ginza 8-13-1, Ginza Mitsui Building
Business: Rental services, installment sales, various financing activities.
Website: JA Mitsui Lease

JA Mitsui Lease Auto Corp
Location: Same as above
Business: Automotive leasing, installment sales, rental services, and related activities.
Website: JA Mitsui Lease Auto

Denchi Co.
Location: Saitama, Honjo City, Nishi-Tomida 1011
Business: Development and rental of software and hardware solutions.|Website: Denchi

Japan Auto Recycling Co.
Location: Toyama, Toyama City, Matsuura 7-30
Business: Automotive dismantling, industrial waste collection and treatment.|Website: Japan Auto Recycling