JAPAN REPORT
Kubota is considering in-house production of batteries for electric agricultural equipment. It is considering developing and designing its own batteries and building a new plant in Japan.
The company intends to launch electric tractors and mowers in Europe and the United States by 2030. Kubota is preparing for increased demand in Europe, the U.S., and other markets by establishing a system for in-house production of batteries, which determine the running time of electric agricultural machinery.
Kubota currently manufactures diesel engines for agricultural machinery, mainly in Thailand and Japan and ships them to the United States and Europe for final assembly. Regarding batteries, which are a key component of electric agricultural machinery, President Kitao said, “As with engines, we would like to be able to produce batteries for Asian markets in Thailand, and those for Japan, Europe, and the United States in Japan.”
Kubota began renting electric tractors in Europe in April 2023. Currently, the company assembles products, including batteries, in a vacant room at an existing plant. Kubota will procure battery cells from outside sources, said Kitao, but the company will be responsible for the overall design and development. It is considering building a dedicated battery plant in Japan to meet demand.
Source: The Nikkei
PSR Analysis: Kubota has already invested in a Taiwanese start-up company developing battery systems and is moving toward electrification. Kubota’s strategy of manufacturing its own batteries is a strategy not seen among other agricultural machinery OEMs, and it can be considered because of the scale of Kubota’s business.
At the same time, however, the electrification of agricultural machinery poses significant obstacles. In fact, most people believe that the characteristics of diesel engines are optimal for agricultural machinery, and that it would be difficult to convert to EVs. Frankly, there is no demand for all-electric agricultural machinery currently.
In the automotive sector, the view on BEVs is also changing. Until around 2022, the argument was that BEVs would be the mainstream, but from around 2023, there has been a debate on whether BEVs are really optimal from a life cycle assessment (LCA) perspective.
Considering these different opinions, can agricultural equipment OEMs take a leading role in electrification, and how will that affect the market? Something to think about. PSR
Akihiro Komuro is Research Analyst, Far East and Southeast Asia, for Power Systems Research
