PowerX to List on TSE Growth Market as Domestic BESS Market Expands

PowerX has received approval from the Tokyo Stock Exchange and will list on the TSE Growth Market on December 19. Founded in March 2021, the company manufactures and sells large-scale battery energy storage systems (BESS) for grid-scale and industrial use. As one of Japan’s few domestic BESS manufacturers, PowerX has expanded its operations steadily, deploying systems at more than 100 sites with a cumulative capacity of about 1.4 GWh.

Ahead of the listing, the CEO said that emerging companies face hurdles to win large-scale critical infrastructure projects, and that going public will strengthen PowerX’s credibility. The company will reinvest the proceeds to expand its existing factory in Tamano City, Okayama Prefecture, and to build a second factory. It will also allocate funds to research and development to commercialise next-generation large-scale battery systems that deliver higher performance with a smaller footprint, enhancing competitiveness. PowerX has started fixed-price electricity supply plans for corporate customers and plans to further expand power retailing by leveraging its battery storage systems.

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Market Drivers and Company Outlook

As a background development, rising demand from grid-scale BESS developers and co-location projects, together with the Japanese government’s push to promote domestically manufactured battery storage over foreign-made systems (see our previously published article), are also supporting PowerX’s decision to go public. According to the CEO, the company expects consolidated revenue for the fiscal year ending December 2025 to triple from the previous year, signaling improving financial conditions and reinforcing confidence in its ability to present a business plan that remains fully accountable to investors.

Shulman Commentary: Leveraging its position as a leading BESS manufacturer in Japan, the company has strategically expanded its business into retail and aggregation over time, providing a unique and more integrated energy service. Some describe the Japanese BESS market as being in a ‘boom’; PowerX’s IPO at this time indicates that the company has gained enough knowledge and experience in the sector to scale up its operations and recognizes that the Japanese BESS market has further growth potential.