Daigas Group and Sumitomo Mitsui Auto Service Launch Co-Creation for New Value Creation through EV Utilization

Osaka Gas Co., Ltd. (Headquarters: Chuo-ku, Osaka, Osaka; President and CEO: Masataka Fujiwara; hereinafter "Osaka Gas") and SMAS (Sumitomo Mitsui Auto Service Co., Ltd., Headquarters: Shinjuku-ku, Tokyo; President: Koji Asō; hereinafter "SMAS") have signed a memorandum of understanding to create new value through electric vehicle (hereinafter "EV") utilization, commencing full-scale development from June 2026. The two companies aim to jointly realize services that simultaneously optimize EV fleet operations and electricity costs, and to enhance EV value by applying battery degradation diagnostics (Note 1) provided by Osaka Gas and KRI Co., Ltd. (hereinafter "KRI"), a 100% subsidiary, to vehicle leasing.

In Japan, EV adoption is being promoted to achieve carbon neutrality by 2050 (Note 2), with expectations for significant growth in the used EV market. At the same time, with the increasing integration of renewable energy (hereinafter "renewables"), balancing electricity supply and demand across different time periods has become a critical societal challenge. In this context, EVs are not only mobility solutions but also mobile batteries. By optimizing charging patterns and appropriately evaluating and utilizing batteries, EVs are expected to generate new value across both mobility and energy sectors.

The Daigas Group, committed to developing technologies and services that contribute to a low- and decarbonized society, is actively investing in EV-related businesses, including demonstrations and services combining EV chargers with energy management systems, and the development of battery degradation diagnostic technologies. SMAS, with one of the largest EV leasing fleets in the industry, aims to become synonymous with EVs and is actively promoting EV adoption. The company is also expanding initiatives for used EVs in collaboration with local governments nationwide, focusing on long-term utilization and value enhancement.

Leveraging Daigas Group’s expertise in energy management and battery diagnostics, and SMAS’s proven experience and service knowledge in EV solutions for corporations and local governments, the two companies will begin full-scale exploration of new services that optimize EV operations and enhance resale value. Through this collaboration, they aim to contribute to the realization of a sustainable society by unlocking new value from EVs.

1. Collaboration Toward Optimizing EV Operations and Electricity Costs

For enterprises adopting EVs, managing electricity costs has become a key business challenge. Efficient operations require strategies such as charging management to reduce peak-time electricity loads and leveraging off-peak hours when electricity prices are lower. However, it is equally essential to ensure that charging does not interfere with vehicle availability and operational schedules.

To address this, the companies will verify a new service that integrates SMAS’s vehicle reservation data with Daigas Group’s energy management systems, aiming to simultaneously optimize vehicle operations and electricity costs.

This initiative aims to help reduce electricity costs and maximize the benefits of corporate EV adoption.

<Overview of Collaboration>

Key Roles

Osaka Gas

- Optimal charging management based on vehicle reservation schedules

- Participation in electricity market trading using EV batteries

- Development of renewable energy-based electricity pricing plans for corporate EV users

SMAS

- Integration of vehicle reservation systems with charging scheduling systems

- Collection of EV charging and usage data

- Development of vehicle management services that ensure uninterrupted operations

2. Collaboration to Enhance Resale Value of Used EVs Through Battery Degradation Diagnostics

High-energy-density batteries in EVs are known to degrade over time due to repeated charge-discharge cycles and environmental factors. However, EV batteries often lack comprehensive usage history, making accurate assessment of their degradation state difficult. This uncertainty contributes to consumer concerns about performance decline and reduced capacity, becoming a barrier to fair pricing and wider adoption of used EVs.

To address this, the companies will apply Daigas Group’s battery degradation diagnostic technology (Note 1) to evaluate the condition of EV batteries handled by SMAS, using short-term charging data. This will support fair pricing, promote reuse, and further enhance the value and market expansion of used EVs.

<Overview of Collaboration>

Key Roles

Osaka Gas

- Development and practical application of battery degradation diagnostics for used EVs (jointly with KRI)

- Analysis of battery data collected from SMAS’s EVs and diagnosis of degradation status

SMAS

- Provision of battery data from EVs leased by SMAS

- Exploration of service integration for used EVs

Going forward, both companies will continue to combine their respective strengths to create innovative services that enhance EV value and address societal challenges.

Note 1: Battery Degradation Diagnostics… (1) Industry-first technology capable of on-site detection of early signs of rapid capacity loss (secondary degradation) using limited data from short charging sessions; (2) Advanced technology that enables detailed diagnosis and prediction of battery capacity and remaining lifespan using historical vehicle usage data.

For details, click here.

Note 2: The Japanese government aims to achieve 100% electric vehicle sales for new passenger cars by 2035.

For details, click here.