Hitachi ZeroCarbon and MUFG announce joint investment in UK Battery-as-a-Service project

Mitsubishi UFJ Bank and Hitachi ZeroCarbon have entered into a business co-creation agreement for Hitachi ZeroCarbon’s global Battery-as-a-Service (BaaS) business. As part of this agreement, MUFG Bank has decided to invest in Next Gen, a project established by Hitachi in the UK to deploy 1,000 electric buses.

Hitachi ZeroCarbon and MUFG Bank signed the business co-creation agreement in December 2023. With the support of its parent company, Hitachi, Hitachi ZeroCarbon aims to expand its BaaS business globally, including the UK and Europe, leveraging its expertise in battery monitoring and management. MUFG Bank will contribute to expanding Hitachi ZeroCarbon’s business opportunities and enhancing its corporate value by leveraging its extensive customer base and network, sophisticated financial services, and other knowledge and know-how.

As the first step in this collaborative effort, MUFG Bank has decided to invest £7.4 million in the Next Gen project, which Hitachi ZeroCarbon invested in November 2023. This represents a new and symbolic initiative that combines Hitachi’s technology with MUFG Bank’s financial expertise to contribute to the electrification of international transportation. The project has attracted market attention for its innovative business model and structure that enables transport operators to access substantial funding for electrification, thereby lowering the barriers to electrifying their fleets.

This marks a significant case of value co-creation where a Japanese investor with ties to Hitachi strategically participates in the UK’s energy transition, providing financial solutions to the challenges of transitioning to large-scale commercial vehicle electrification. This initiative highlights the crucial role international financial institutions play in promoting decarbonization.

This business co-creation is based on MUFG Bank’s “Business Co-creation Investment” framework, which aims to enhance the corporate value of partner companies and investees, as well as contribute to environmental and social development. Hitachi ZeroCarbon and MUFG Bank are committed not only to establishing a leading position in Hitachi Group’s battery business and Hitachi ZeroCarbon’s global BaaS business but also to further contributing to the global adoption of electric vehicles and the realization of a decarbonized society by 2050.

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