Energy Vault Holdings has announced its formal entry into the Japanese market through a binding agreement to acquire a pipeline of 850 MW of battery energy storage systems (BESS) projects from a domestic energy storage developer in Japan.
The acquired portfolio consists of 350 MW of advanced-stage BESS projects targeted to commence construction in H2 2027 and reach commercial operations beginning in H2 2028. The portfolio also includes 500 MW of early-stage BESS projects.
Robert Piconi, Chairman and Chief Executive Officer of Energy Vault, said, “Entering the Japanese market is a key component of our high-growth markets expansion strategy and represents one of the most compelling energy storage growth opportunities globally. This acquisition provides us with a foundational leadership position in Japan with advanced-stage, attractive storage IPP projects coupled with critical local execution capabilities necessary to deliver at the highest performance levels within the Japanese BESS market.
He further added, “By combining our proprietary VaultOS energy management software and global supply chain with a proven local team, we are uniquely positioned to accelerate the deployment of the flexible capacity that the Japanese grid urgently requires. Furthermore, we expect to leverage our new solutions in the high-growth Al Compute segments to further compound growth opportunities within the market to enhance delivery of predictable, high-margin, long-term revenue streams ahead of our previously stated growth targets.”
The Japanese energy market is undergoing a fundamental structural shift toward ‘revenue stacking’, where BESS assets are increasingly required to generate diversified yields from wholesale arbitrage, capacity markets, and critical balancing services to ensure system stability. To meet these specific market dynamics, which demand exceptionally high energy density and stringent safety profiles, Energy Vault intends to leverage its technology-agnostic approach. This includes deploying its B-VAULT AC Technology Platform and integrating alternative chemistries, building upon the company’s recently announced partnership with Peak Energy to commercialise next-generation sodium-ion battery technology, the company stated.
“Despite being a highly developed economy, Japan’s energy storage market remains significantly underpenetrated and is now entering a period of accelerated growth driven by renewable expansion and structural grid constraints. Importantly, storage demand in Japan is not tied to load growth, but to the increasing need for flexibility, resilience, and system stability creating a powerful, long-duration growth tailwind for our broad portfolio of solutions,” added Piconi.
Energy Vault’s active global portfolio of owned assets now encompasses over 1 GW of critical energy and Al digital compute infrastructure in operation or under construction, including newly announced expansions in ‘powered land’ and ‘powered shell’ modular data centres in the US market.
