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

Sumitomo Mitsui Auto Service Co., Ltd. (headquartered in Shinjuku-ku, Tokyo; President and CEO: Koji Aso; hereinafter "SMAS") and Osaka Gas Co., Ltd. (headquartered in Osaka City, Osaka Prefecture; President and CEO: Masataka Fujiwara; hereinafter "Osaka Gas") have signed a memorandum of understanding to create new value through electric vehicle (hereinafter "EV") utilization, and will begin full-scale development from June 2026. The two companies aim to provide services that simultaneously optimize EV fleet operations and electricity costs, as well as enhance EV value by applying battery degradation diagnostics—offered by Osaka Gas and its 100% subsidiary KRI (hereinafter "KRI")—to vehicle leasing.

In Japan, EV adoption is being promoted to achieve carbon neutrality by 2050※2, and the reuse EV market is expected to grow significantly. At the same time, with the increasing deployment 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 and appropriately evaluating and utilizing batteries, EVs are expected to generate new value from both mobility and energy perspectives.

The Daigas Group is actively developing technologies and services that contribute to a low- and decarbonized society, focusing on EV-related businesses such as pilot projects and services combining EV chargers with energy management, as well as the development of EV battery degradation diagnostic technologies. SMAS, possessing one of the largest EV leasing fleets in the industry, aims to become the go-to provider known as "EV means SMAS," actively promoting EV adoption. The company is also expanding initiatives for reuse EVs in collaboration with local governments nationwide, aiming for long-term EV utilization and enhanced residual value.

With this partnership, the companies will combine Daigas Group’s expertise in energy management and battery diagnostics with SMAS’s knowledge and operational experience in EV services for corporations and local governments. This collaboration will initiate full-scale development of new services that optimize EV operations and increase resale value. Both companies aim to contribute to the realization of a sustainable society through the creation of new EV value.

1. Collaboration for Optimizing EV Fleet Operations and Electricity Costs

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

In response, SMAS will integrate vehicle reservation data with Daigas Group’s energy management systems to verify new services that simultaneously optimize vehicle operations and electricity costs.

This initiative aims to 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 EV-adopting companies

SMAS

- Integration of vehicle reservation and charging scheduling systems

- Collection of EV charging and usage data

- Development of vehicle management services that do not disrupt operations

2. Collaboration to Enhance Resale EV Value through Battery Degradation Diagnostics

High-energy-density batteries in EVs are known to degrade over time due to repeated charge-discharge cycles and environmental conditions. However, EV batteries often lack sufficient usage history, making accurate assessment of degradation difficult. This uncertainty leads to concerns about performance decline and capacity loss, becoming a barrier to fair pricing and widespread adoption of reuse EVs.

To address this, the companies will apply Daigas Group’s battery degradation diagnostic technology※1 to evaluate the condition of EV batteries handled by SMAS, using short-term charging data. This will enable fair valuation and broader reuse of EVs, promoting further value enhancement and market expansion.

<Overview of Collaboration>

Key Roles

Osaka Gas

- Development and practical application of battery degradation diagnostics for reuse 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 reuse EVs

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

※1 Battery Degradation Diagnostics… (1) Industry-first technology capable of on-site diagnosis of sudden capacity loss (secondary degradation) using limited data from short charging sessions; (2) Technology enabling detailed diagnosis and prediction of battery capacity and remaining lifespan using vehicle usage history data

For details, click here.

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

For details, click here.