Energy & Industry Business

To realize the carbon neutrality and digital society outlined in the NGK Group Vision, focus on the sustainable provision of reliable products that meet the quality and affordability demands of customers.

The Energy & Industry Business Group is comprised of a two-business structure, the Energy Storage Business and the Insulator Business. Under this structure, we are aiming to contribute to society’s essential infrastructure by offering unique products and services for the electricity and energy fields.

The issue is being successful at both offering the products required by society and achieving profitability. Positioning NAS® batteries, the main product of the Energy Storage Business, as a pillar of our growth strategy, we will advance the formation of a business model that leverages the characteristics of these products, including their high capacity, long service life, and long duration charging/discharging capabilities. By expanding sales in overseas markets, where demand is stronger, we are seeking to link shipment volume to income generation. Recently, we received a large-scale order through the German chemical manufacturer BASF*, with whom we have a sales partnership. The characteristics of NAS batteries align well with the storage needs of renewable energy such as solar and wind power generation, which has numerous limitations and can be influenced by the climate. For this project, our products will enable the stable provision of renewable energy to a green hydrogen production process, ensuring the efficient production of green hydrogen. Moving forward, we can expect that our partnership with BASF will lead to additional orders received. We will leverage such success to promote cost reductions by pursuing stable production through process automation and timely and appropriate procurement from parts and materials suppliers.

The Insulator Business continues to see firm demand in regions such as US and Australia, where we have production facilities. In Japan as well, planned power grid investments are being implemented, so we will work to steadily capture that demand and engage in efficient business management to maintain profitability.

Today, there is no avoiding climate change response or the arrival of a digital society. It is also clear that we will see dramatic increases in demand for the renewable energy needed to realize carbon neutrality, including applications such as the rapid charging of electric vehicles and powering the data centers that support AI. In this environment, we will closely monitor ever-changing market and technology trends. We will work to continuously provide a product selection that supports the stable supply of electricity and the effective use of renewable energy as we remain committed to contributing to the creation of a prosperous society.

*For a green hydrogen production project by HH2E AG in Germany.

Business overview and outlook

In FY2023, we were able to achieve a income for the first time in eight periods. In addition to strong investment in transmission network enhancement and renewable energy-related projects leading to increased demand for insulators in markets such as the USA, Taiwan, and Australia, continued shipments of NAS (sodium–sulfur) battery systems for electric energy storage and products for industrial equipment and yen depreciation also had a positive impact.

In FY2024, we are forecasting increased sales through the continuation of demand for insulators and orders received for large-scale projects overseas involving NAS batteries. However, the impact of soaring prices for raw materials and fuel will be unavoidable. To mitigate this, we will focus on cost reduction, strengthening the supply chain, and implementing other measures to improve profitability and foster business growth.

*From FY2024, we moved the Industrial Process Business from the Energy & Industry Business to the Environment Business.

Note: This interview was conducted in April 2024.