Japanese authorities have officially terminated subsidies for APB Corp, a pioneer in next-generation all-polymer battery technology, amid severe financial difficulties and leadership turmoil.
The Ministry of Economy, Trade and Industry (METI) Minister Muto Yoji announced the decision at a November 19 press conference, explaining that APB had failed to meet its initial research and development targets for all-polymer batteries.
In 2022, the New Energy and Industrial Technology Development Organization (NEDO), operating under METI, approved a JPY4.6 billion (US$33 million) subsidy to support APB's project, with JPY1 billion already disbursed.
APB, established in 2018 by former Nissan engineer Hideaki Horie, developed the all-polymer battery as a safer alternative with lower fire risks, specifically targeting electric vehicle (EV) applications. The company secured both critical patents for mass production technology and government backing in 2022.
Internal conflicts erupted over commercialization timelines, culminating in Horie's dismissal as CEO in June 2024. Subsequently, Horie accused his successor, Marei Oshima, the former vice president and current CEO, of attempting to transfer proprietary technology to China to secure mass production funding, further destabilizing the company.
Following the leadership change, APB entered negotiations with its primary lender, Hokkoku Financial Holdings, and its subsidiary QR Investment, a major APB shareholder. The bank demanded Horie's reinstatement as a condition for additional funding, but negotiations collapsed in late October 2024.
As APB's financial situation deteriorated, QR Investment filed for bankruptcy proceedings under Japan's Corporate Reorganization Act on November 1. However, APB's shareholder documents indicate no definitive decision on reorganization has been made, leaving the final determination to the Tokyo District Court. Court approval would result in the dismissal of the current management team.
On November 19, APB released a statement refuting media reports of information leaks, asserting strict compliance with security protocols and regulations.
In light of these mounting challenges, METI's withdrawal of support for APB's all-polymer battery project leaves the future of this promising technology uncertain.
