Energy Vault Holdings officially entered Japan's energy storage market on April 9, 2026, by signing a binding agreement to acquire an 850 MW battery energy storage system (BESS) development portfolio. This marks the company's first direct presence in Japan. The transaction includes a local Japanese development team and covers 350 MW of advanced-stage projects scheduled for construction in the second half of 2027, with commercial operations starting in late 2028. An additional 500 MW of projects remain in early development.
Background
Japan's energy storage sector is experiencing rapid growth, driven by increasing renewable energy deployment, grid constraints, and a projected compound annual growth rate of over 50 percent for BESS capacity. Energy Vault is executing its "Own & Operate" strategy, developing, building, and managing storage assets to secure recurring revenue streams. Integrating a local team is key to navigating Japan's complex land rights, permitting, and utility interconnection processes.
Details
Energy Vault will acquire a pipeline of BESS projects from a major domestic developer and onboard its experienced local team to support execution. The 350 MW of advanced-stage projects are slated to break ground in the second half of 2027, targeting commercial operation by late 2028. In addition, 500 MW of early-stage projects extend the development pipeline over several years.
According to Energy Vault, its total owned and under-construction energy and data center infrastructure now surpasses 1 GW. The company projects annual recurring EBITDA of over US $180 million once assets become fully operational within the next 12 to 36 months, exceeding earlier forecasts.
Robert Piconi, Chairman and CEO of Energy Vault, said entering Japan is a core component of the company's global expansion into high-growth storage markets. He stated that combining VaultOS software and its global supply chain with the local team will accelerate the deployment of flexible capacity on Japan's grid. Energy Vault plans to implement its B-VAULT AC platform and introduce sodium-ion battery chemistry through a partnership with Peak Energy to meet Japan's requirements for energy density and safety.
The company's global portfolio now exceeds 1 GW across energy storage and AI compute infrastructure, reinforcing its strategy of predictable, high-margin recurring revenues.
Outlook
Energy Vault's immediate priorities are to secure project financing and obtain regulatory approvals for its Japanese portfolio. Successful execution could position the company as a significant participant in Japan's expanding BESS sector, aligning with national 2050 carbon-neutral targets. The financial performance and liquidity of the company will be under scrutiny as projects advance toward construction and operational milestones.
