ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Keita Ishii, President & COO; hereinafter "ITOCHU") announced today that ITOCHU and PowerX, Inc. (headquartered in Minato-ku, Tokyo; Masahiro Ito, Director, President & CEO; hereinafter "PowerX"), which aims at production of lithium ion battery energy storage system in Japan, concluded a contract regarding the acceptance of new shares issued in a series A round private placement. ITOCHU will promote further enhancement of its energy storage battery business through this investment.

Energy storage solutions powered by batteries are the key in expanding the use of renewable energy. PowerX owns the proprietary technologies, including battery control and manufacturing technology and is planning to establish one of Japan's largest battery assembly plant in Okayama Prefecture. This is expected to enable PowerX to product energy storage systems in large volume and at low cost, and achieve both safe and cost effective in energy storage battery business.

ITOCHU has been working on its battery business since 1990s and, to date, has sold a cumulative total of more than 500MWh (as of the end of March 2022) of energy storage systems. Through the business, it has been focusing on creating solutions to social issues such as VPP service, etc. ITOCHU participates in the manufacturing of energy storage systems through NF Blossom Technologies, Inc., in Japan while Eguana Technologies Inc., in overseas market and also is engaged in EV battery reuse/recycle business through the investment in Shenzhen Pandpower Co., Ltd..

By contributing the knowledge that ITOCHU has accumulated from its energy storage battery and renewable energy business, with collaborating with Power X in manufacturing and distribution of battery products, both companies will together create new ecosystems and business models and will contribute to realize distributed energy in a decarbonized society.