Japan Bank for International Cooperation ( JBIC ) has made an equity investment in battery maker TeraWatt Technology, a US company with Japanese founders. Financial terms of the deal were not disclosed.

California-based TeraWatt Technology develops, manufactures, and sells next-generation batteries that offer high energy density, enhanced safety, and cost advantages.

Backed by global investors, including Khosla Ventures and Temasek, the company aims to drive electrification in diverse fields such as electric vehicles ( EVs ), drones, emerging applications such as electric vertical take-off and landing aircraft ( eVTOL ), and energy storage systems for domestic and overseas customers.

Its business contributes toward realizing a decarbonized society and enhancing the global competitiveness of Japanese industry, JBIC says. The investment, made through JBIC’s Special Operations Account, is based on its Startup Investment Strategy.

The investment will support TeraWatt Technology’s global expansion, thereby contributing towards strengthening the international competitiveness of Japanese industry, the bank adds.

Under its Start-up Development Five-Year Plan, approved by the Cabinet in November 2022, the Japanese government aims to nurture start-ups that aggressively challenge the global market. The latest JBIC investment is in line with this government policy.