Sompo Japan Insurance Co., Ltd. Commencement of Demonstration for Commercialization of Quality Assurance Service for EV Batteries – Contributing to expansion of EV market and formation of battery circulation market by optimizing the value of used E

Sompo Japan Insurance Inc.
Started Demonstration for Commercialization of EV Battery Quality Assurance Service -Contributing to EV Market Expansion and Battery Recycling Market Formation by Optimizing the Value of Used EVs-
Sompo Japan Insurance Inc. (President: Giichi Shirakawa, hereinafter “Sompo Japan”) and The Japan Research Institute, Ltd. (President: Katsunori Tanizaki, hereinafter “The Japan Research Institute”) have established the BACE Consortium*1 ( In the activities of the “consortium”), in order to promote the distribution of used EVs, in considering the commercialization of a service for quality assurance of used EV batteries (hereinafter referred to as “the service”), the development and sales of battery diagnostic equipment Goiku Battery Co., Ltd., which develops electric measuring instruments, and Hioki Electric Co., Ltd., which develops electrical measuring instruments, as well as major domestic used car distributors, major dealers, and major second-hand stores as partners. test”) will start in November 2022. This test will be a large-scale test covering hundreds of vehicle models from across manufacturers, with the aim of collecting basic data for this service and establishing vehicle evaluation methods.
This consortium has been leading the business development of the reuse of EV batteries in China so far *2, *3. This is the first step in building a circular economy value chain that connects EV use, battery reuse, and recycling.
1. Purpose/Background
 There are high expectations for EVs as one of the leading players in carbon neutral and green growth strategies. However, Japan is far behind the world in the spread of EVs, and the number of EVs sold worldwide in 2021 is 6.6 million (3.3 million in China, 2.3 million in Europe, 630,000 in the United States). , Japan remains at about 20,000 units.
One of the main reasons for the lack of popularization is the limited availability of EV charging stations, short cruising range, and concerns about battery performance, such as being affected by the usage of air conditioners. Uncertainty about battery quality is even greater for second-hand EVs whose past usage conditions are unknown. As a result, used EVs are not properly valued, and the used market is sluggish. This decline in used car prices was also a factor in hindering the spread of new cars.
In order to properly evaluate used EVs, it is necessary to use high-speed diagnostic technology that can handle a wide range of batteries in a short period of time that can be used on-site such as second-hand sales. However, the battery quality of used EVs varies depending on the conditions of use, and the accuracy of measurement is affected by the environment of the measurement site.
 Conventionally, quality evaluation of EV batteries required removal from the EV and charging/discharging, and it took about a day to measure, making it difficult to implement at second-hand sales sites. As a result, we had no choice but to make estimates based on the mileage and model year, and there was the problem of not being able to make an appropriate objective evaluation. In recent years, several short-time measurement technologies have been developed and are being put to practical use, but there is also the problem that users cannot use them with peace of mind without not only diagnosing but also quality assurance of the battery.
In order to solve these various problems, the consortium has so far conducted verification tests of multiple diagnostic technologies that estimate battery quality in a short period of time. In addition to verifying the use of diagnostic technology when evaluating the quality of EV batteries, the purpose is to collect basic data for warranty and establish vehicle evaluation methods by evaluating EV batteries in various states of deterioration. I started this test.
2. Used EV distribution promotion service envisioned by this consortium This consortium aims to provide a system service that not only enables high-speed measurement within one minute without removing the battery, but also enables highly accurate battery evaluation without burdening the operation of used car sales. In addition, by evaluating using multiple advanced high-speed diagnostic technologies, it is possible to utilize diagnostic technologies that match the battery and measurement conditions, and perform various evaluations that meet customer needs. Furthermore, by guaranteeing the battery according to not only diagnostic evaluation but also diagnostic results, users will be able to use it with peace of mind, and it will be possible to realize the appropriate value of used EVs.
The business envisioned by this consortium will use diagnostic technology to evaluate used EVs and reused batteries, but the purpose is not to sell diagnostic technology. By diagnosing and evaluating a wide range of batteries in a cross-sectional manner so that the cyclical market is not fragmented, we will form a place that promotes the evaluation, realization of value, guarantees, and distribution of used EVs, reused batteries, and battery resources. is intended for In addition, the technological development of EV batteries is progressing rapidly, and various batteries such as all-solid-state batteries are being developed around the world, and many diagnostic technologies will be developed accordingly. For business operators who want to objectively evaluate used EVs and distribute them with high added value, it is most convenient to evaluate these increasingly complex and sophisticated batteries using the most appropriate diagnostic technology at the time. will be As a result, we will provide users such as used car dealers, dealers, and leasing businesses with various diagnostic technologies all at once, creating a cross-market distribution platform that performs diagnostic evaluations without relying on batteries. will form. Through this, we aim to contribute to the development of the EV market itself by building a healthy market for used EVs and enabling EV buyers to purchase new EVs with peace of mind.
Currently, due to low demand in Japan, about 80% of used EVs are exported overseas. The use of such used vehicles in Japan will enable the expansion of the used vehicle market. In addition, promoting the domestic use of used EVs is also effective in terms of securing domestic resources. The used EV diagnostic evaluation and warranty service expands the domestic used distribution market, promotes the reuse and recycling of batteries in Japan, and contributes to the expansion of the domestic circulation of resources.
[Role of each company]
[Table 2: ]
3. About the future
This consortium will manage the quality of EV batteries at each stage of the cyclical market, from use in EVs to reuse, recycling, and use as recycled materials, and distribute the obtained value information throughout the cyclical market. We aim to provide service.
We aim to launch this service business in FY2023 by proceeding with this test with a wide range of used car dealers, dealers, leasing companies, etc. in FY2022 and setting an outlook for the warranty service method. We will continue to promote collaboration with the parties concerned.
*1 BACE Consortium (Battery Circular Ecosystem Consortium)
This is a consortium for business studies by companies that form Japan’s advanced diagnostic technology development and cyclical market ecosystem. We have built a system that can integrate and use a large number of advanced diagnostic technologies to enable one-stop diagnostic evaluation of various batteries. By forming a highly reliable circulation distribution market using blockchain, we aim to form the core function of a unique battery circulation ecosystem. As a result, 1. Improve resale value by clarifying quality when buying and selling used EVs, 2. Expand the reuse battery market by improving quality when reused and increasing reliability, 3. Disperse sales of used EVs, maintenance, dismantling, reuse, etc. A cross-industry service business that improves the decarbonization value of batteries by building a common platform for battery distribution information by value chain stakeholders and improving reliability, and 4. Calculating CO2 emissions and CO2 reduction effects of batteries. We will work to realize a platform for diagnosis and battery value distribution that creates
[News Release/October 16, 2020] Consortium Established for Recycling Model for Vehicle Batteries
*2 [News Release/July 15, 2021] Regarding the test implementation of EV battery residual value diagnostic technology
*3 [News Release/March 31, 2022] Conclusion of Agreement to
Commercialize Residual Value Evaluation Service for EV Batteries
that’s all
[About Goiku Battery Co., Ltd.]
Location: 5-13-12 Nishinakajima, Yodogawa-ku, Osaka
Established: 2014
Business description: Development and sales of battery diagnostic equipment using high-speed diagnostic technology, battery management systems, rapid charging equipment, etc.
[About Hioki Electric Co., Ltd.]
Location: 81 Koizumi, Ueda City, Nagano Prefecture
Founded: 1935
Business: Development, production, sales and service of electrical measuring instruments
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