TOKYO: Japan plans to sign a memorandum of cooperation on storage battery supply chains with Canada, an industry ministry official said on Thursday, confirming a report that Tokyo will step up collaboration with the North American country in this area.

The Nikkei newspaper first reported that Industry Minister Yasutoshi Nishimura will visit Canada from early as Sept. 21 to sign an agreement for cooperation on storage battery supply chains with Canadian Natural Resources Minister Jonathan Wilkinson.

The move would testify to Japan’s resolve to make its supply chains more diverse.

“At the moment, I can’t say what it is, but we’re now thinking of signing a memorandum of cooperation for the battery supply chain,” the Ministry of Economy, Trade and Industry official said, without elaborating further.

Nishimura was set to comment on the issue in remarks he would be making following a regular cabinet meeting on Friday, the official added.

Nikkei said Japan’s public and private sectors would build a supply chain in Canada by exploration and processing of critical minerals for EVs and production of storage batteries.

The Japanese government in June boosted support for the domestic production of storage batteries to up to $2.2 billion.

It has designated batteries for energy storage as important under an economic security law.

Reuters