The global shift toward electric vehicles (EVs) is accelerating as decarbonization efforts gain momentum. Yet Japan relies heavily on imported rare metals such as lithium and cobalt for EV batteries and lacks a domestic framework to accurately evaluate the performance and value of used batteries. As such, roughly 80% of used EVs are exported. Addressing this situation requires a system that makes battery value visible and promotes domestic circulation.
In response, two departments within Sumitomo Mitsui Banking Corp. (SMBC) approached the issue differently. The Corporate Advisory Division, which aims to foster next-generation industries, has identified smart mobility and the EV battery sector as priority areas since 2016. And the Sustainability Development Dept. focused on building a circular economy (CE) from the perspectives of environmental solutions and economic security. Acting on advice from SMBC Vice Chairman, Naoya Misawa of the Corporate Advisory Division met MobiSavi Inc. (MobiSavi) President Kiyo Sako, whose company predicts EV battery performance, prompting both departments to launch a new market-creating initiative.
Investing in MobiSavi: Device-less, Multi-brand
EV Battery Performance Prediction
MobiSavi’s EV battery performance prediction technology differs from conventional methods by using statistical analysis to estimate battery degradation without physical measurement devices. Using data such as vehicle specifications, driving behavior, road conditions and ambient temperature, it can be applied to vehicle models from a wide range of domestic and international manufacturers. It predicts both current battery condition and future performance degradation with high precision, enabling objective valuation of previously opaque used batteries and supporting fair pricing.
Misawa was impressed not only by MobiSavi’s unique technology but also by Sako’s commitment to addressing social issues. Concluding that the project would help strengthen Japan’s industrial competitiveness, he worked with Nana Azuma of SMBC’s Sustainability Development Dept. to execute an equity investment using the Social Value Creation Investment Framework, which prioritizes social value alongside economic returns. He later shared his perspective as a business partner on the background to this investment.
“This project goes beyond simple financial support. Building a CE requires a value chain in which diverse industries work together. We are committed to ‘creating an industry together’ by working with MobiSavi to address ecosystem challenges and using SMBC Group’s network to connect the missing pieces.”
Fostering Understanding of MobiSavi’s Technology and
Establishing SMBC Group’s Investment Rationale
Bringing this investment to fruition involved two main challenges. The first was building internal understanding of MobiSavi’s technological superiority. Because the EV battery CE market is highly specialized and still in its early stages, sharing the importance of the technology across the organization was essential.
To make his internal explanations persuasive, Misawa first focused on acquiring expert knowledge. Starting from a point where even basic terms such as “ampere,” a unit of electric current, were unfamiliar, he studied the fundamentals of physical chemistry and electrochemistry, which underpin battery technology. He also took part in demonstration experiments in Fukuoka Prefecture to better understand on-site issues and needs, building a foundation to explain the importance of the technology logically.
This commitment to building expertise was highly valued by MobiSavi. Sako noted, “Misawa and the SMBC Group team have surprisingly deep knowledge of the automotive industry and have accurately grasped the issues. I place great trust in them as partners because of their high level of expertise.”
The second challenge was clearly establishing the validity of the investment for SMBC Group, beyond the technological advantage. Azuma, who led the initiative, explained the key considerations when applying the Social Value Creation Investment Fund:
“The requirement was not just that MobiSavi’s technology was superior, but that it aligned with the direction of the CE that SMBC Group is aiming for and contributed to the Group’s overall business development.”
To position the investment as part of Group-wide business development, Azuma first researched EV-related business trends across Group companies. She then identified potential synergies with existing initiatives, such as reused battery businesses, once MobiSavi’s technology is built into the value chain to make battery performance visible. In this early stage of the EV battery market, where predictive data is still limited, she also emphasized social value factors such as the importance of being a first mover and contributing to economic security to make the case for the investment’s soundness.
The combination of technical persuasiveness grounded in field knowledge and strategic validity tied to Group-wide business development ultimately made the investment in MobiSavi possible.
Designing Mechanisms to Balance Social Impact with Economic
Rationality to Make CE a Sustainable Business
This investment marked a major turning point for MobiSavi. Sako reflected:
“To be honest, my resolve to start the business was still vague at the time. But the SMBC Group team’s deep understanding of our business and hands-on support became a source of mental support and solidified my determination to move the business forward. Our dialogue helped us recognize the value of our device-less technology and clarify our key selling points, and the partnership announcement gave us significant momentum, building recognition that ‘when it comes to EV batteries, people think of MobiSavi.’”
Since the announcement, numerous inquiries have come in from both inside and outside the bank, and several business matches between SMBC Group clients and MobiSavi have already materialized. New forms of collaboration are beginning to emerge, and MobiSavi aims for further growth centered on this partnership. Sako then described the company’s vision for the future.
“In a society with a declining population, mass production and mass consumption are no longer viable; the CE philosophy of making full use of what already exists is essential. Its essence is not monopoly, but co-creation across the entire industry. We position our foundational technology, which visualizes EV value, as social infrastructure for that purpose. That is why we do not seek to compete with specific players, but to serve as a catalyst that works in coordination with all players to support the spread of EVs and the growth of the market.”
SMBC Group intends to support this vision as a business partner, building an ecosystem that brings together industry, government and academia to elevate EV and EV battery CE into one of Japan’s new core industries. Using this early entry into the EV market as a foothold, the Group also plans to expand its CE initiatives into other fields.
Reflecting on the initiative, Misawa emphasized the importance of “sustainable business design” that balances solving social issues with economic rationality:
“I believe a truly sustainable state is one where activities operate autonomously without anyone having to overextend themselves. It is important to create a market where companies can enter naturally as a business, without relying on regulations or subsidies. In initiatives like this EV battery CE project, if we design mechanisms that make value visible and promote transactions, new business opportunities will emerge while also helping to solve social issues. I believe this kind of design is the key to continuously addressing social issues.”