Tokyo, May 10, 2024 — MUFG Bank, Ltd. (Junichi Hanzawa, President & CEO; hereinafter MUFG Bank) has concluded a Business Co-Creation Agreement with Hitachi ZeroCarbon Limited (Ram Ramachander, CEO; hereinafter Hitachi ZeroCarbon) on Hitachi ZeroCarbon’s global Battery as a Service business. MUFG Bank has decided to make a strategic investment into Hitachi ZeroCarbon’s Next Gen project, which introduced 1,000 new e-buses in UK.
The strategic alignment between Hitachi ZeroCarbon and MUFG was established by a Business Co-Creation Agreement signed on 22nd December 2023. Hitachi ZeroCarbon aims to develop and expand its business in the UK, Europe and globally, by leveraging its advanced skills and expertise in the operation and management of batteries, supported by its parent company, Hitachi Ltd. MUFG will contribute to Hitachi ZeroCarbon’s business opportunities through its expertise in financial services and its international presence, as well as its broad and various client network.
As a first step of the Business Co-Creation, MUFG commits to invest up to GBP 7.4m into the Next Gen project following Hitachi ZeroCarbon’s investment in November 2023. This new and epoch-making collaboration of Hitachi ZeroCarbon’s technology and MUFG’s finance intelligence leads to the decarbonization of the mobility sector globally through establishing well-built business models and structures that ensure fleet operators receive funding for EV assets enabling them to accelerate their EV transition.
This is an investment by a Japanese financial institution’s strategic involvement into the energy transition program in the UK, based on its firm relationship with Hitachi. It also represents the important role of the global banking industry to contribute to financial challenges of commercial fleets operators’ transition to electric vehicles at scale.
The collaboration of Hitachi ZeroCarbon and MUFG is based on the concept of MUFG’s “Business Co-Creation and Investment”, which pursues the creation of value through strategic partnerships to improve society and the environment. For this announced transaction for the global EV market, Hitachi ZeroCarbon and MUFG aim not only to develop Hitachi ZeroCarbon’s strong position in the global Battery as a Service market, but also in the acceleration of electric mobility and 2050 net zero targets.
About NextGen
NextGen offers affordable financing for EVs and batteries to its customers through a shared ownership approach. This not only reduces the upfront costs of electrification, but enables fleet operators to benefit from improved battery performance and lifetime, increased asset residual value and new revenue streams without responsibility for ongoing management. Hitachi ZeroCarbon’s leading EV charging and battery management services assure optimal battery health and NextGen provides an opportunity for fleet operators to capitalise on this and unlock revenue gains from fleet electrification.