The transaction includes the integration of an established team of local energy experts and the acquisition of a high-quality, 850 MW Battery Energy Storage System (BESS) development portfolio, positioning Energy Vault to capitalise on one of the fastest growing and structurally-advantaged energy storage markets among developed economies.
The acquired portfolio consists of 350 MW of advanced-stage BESS projects targeted to commence construction in H2 2027 and reach commercial operations beginning in H2 2028.
The portfolio also includes 500 MW of early-stage BESS projects, providing a robust, multi-year growth pipeline that positions Energy Vault for long-term leadership in the Japanese energy storage market.
This acquisition establishes Energy Vault’s immediate presence in Japan, directly capitalising on a uniquely attractive market driven by increasing grid constraints, rapid renewable penetration, and a projected 50%+ CAGR in BESS capacity.
A critical component of this entry strategy is the onboarding of the local development team into Energy Vault, securing invaluable on-the-ground expertise in Japanese land rights, complex permitting, and utility interconnections.
By combining this local development savvy and execution capability with our global integration, supply chain and asset ownership expertise, Energy Vault is uniquely positioned to support Japan’s 2050 carbon-neutral goals while delivering diversified returns across the country’s highly attractive wholesale arbitrage, capacity, and balancing markets.
“Entering the Japanese market is a key component of our high growth markets expansion strategy and represents one of the most compelling energy storage growth opportunities globally,” said Robert Piconi, Chairman and Chief Executive Officer of Energy Vault.
“This acquisition provides us with a foundational leadership position in Japan with advanced stage, attractive storage IPP projects coupled with critical local execution capabilities necessary to deliver at the highest performance levels within the Japanese BESS market.”
“By combining our proprietary VaultOS™ energy management software and global supply chain with a proven local team, we are uniquely positioned to accelerate the deployment of the flexible capacity that the Japanese grid urgently requires.”
“Furthermore, we expect to leverage our new solutions in the high-growth AI Compute segments to further compound growth opportunities within the market to enhance delivery of predictable, high-margin, long-term revenue streams ahead of our previously stated growth targets.”
The Japanese energy market is undergoing a fundamental structural shift toward “revenue stacking,” where BESS assets are increasingly required to generate diversified yields from wholesale arbitrage, capacity markets, and critical balancing services to ensure system stability.
To meet these specific market dynamics, which demand exceptionally high energy density and stringent safety profiles, Energy Vault intends to leverage its technology-agnostic approach.
This includes deploying its B-VAULT™ AC Technology Platform and integrating alternative chemistries, building upon the Company’s recently announced partnership with Peak Energy to commercialise next-generation sodium-ion battery technology.
“Despite being a highly developed economy, Japan’s energy storage market remains significantly underpenetrated and is now entering a period of accelerated growth driven by renewable expansion and structural grid constraints. Importantly, storage demand in Japan is not tied to load growth, but to the increasing need for flexibility, resilience, and system stability—creating a powerful, long-duration growth tailwind for our broad portfolio of solutions,” added Piconi.
Energy Vault’s platform creates a fully integrated value chain spanning the complete infrastructure lifecycle, from initial development through long-term operations, enabling the Company to generate stable, recurring cash flows from owned assets.
By self-performing critical functions including engineering, procurement, construction, and ongoing service agreements, Energy Vault produces diversified revenue streams while maintaining strategic flexibility to deploy capital where it delivers optimal returns.
Energy Vault’s active global portfolio of owned assets now encompasses over 1 GW of critical energy and AI digital compute infrastructure in operation or under construction, including newly announced expansions in “powered land” and “powered shell” modular data centers in the US market.
These assets announced to date are expected to yield over $254 million+ (USD 180 million+) in annual, recurring EBITDA streams once fully constructed and operational in the next 12-36 months, well ahead of our previously stated guidance.
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