Energy Vault Holdings, Inc. has completed the acquisition of an 850 MW Battery Energy Storage System (BESS) development portfolio in Japan from BayWa r.e. AG, marking the company’s formal entry into one of the world’s fastest-growing energy storage markets.
The deal gives Energy Vault an immediate operational platform in Japan along with a pipeline of utility-scale energy storage projects and an experienced local development team. The acquisition is expected to strengthen the company’s long-term strategy of building owned energy storage assets while expanding its presence across key international markets.
The acquired portfolio includes around 350 MW of advanced-stage BESS projects that are expected to reach Notice to Proceed (NTP) during the second half of 2027. Commercial operations for these projects are projected to begin by mid-2028. In addition, the portfolio also includes nearly 500 MW of early-stage projects, giving Energy Vault a long-term development pipeline in Japan.
A major highlight of the portfolio is that the advanced-stage projects are expected to feature three-hour storage duration systems. Compared to shorter-duration battery systems commonly deployed in several global markets, including the United States, these projects are expected to deliver higher energy capacity per MW and improved long-term revenue potential.
The company stated that Japan’s comparatively lower financing costs and increasing demand for flexible power infrastructure make the market highly attractive for long-term battery storage investments.
The acquisition also brings an experienced local development team into Energy Vault’s operations. The team has expertise in areas such as land acquisition, utility interconnections, and regulatory approvals — critical capabilities for executing projects in Japan’s complex energy market environment.
“This acquisition marks a significant step in Energy Vault’s global growth strategy and establishes our direct operating platform in one of the world’s most compelling energy storage markets,” said Robert Piconi, Chairman and Chief Executive Officer of Energy Vault. “By completing this acquisition, we have secured not only a premium BESS development portfolio, but also an experienced local team from one of the most respected renewable energy platforms globally in BayWa Renewables. Japan’s need for flexible, reliable storage is accelerating, and Energy Vault is well positioned to deliver projects at scale while creating long-term, predictable value for our shareholders.”
“Japan is a strategically important market for energy storage, and we are pleased to have successfully transferred this high-quality portfolio to Energy Vault,” said Daniel Gaefke, Group Chief Operating Officer of BayWa r.e. “This transaction reflects BayWa r.e.’s ability to originate, develop, and monetize premium renewable energy assets globally. With its integrated technology platform, execution capability, and asset ownership strategy, Energy Vault is well positioned to advance these projects and support Japan’s energy transition.”
The formal addition of BayWa r.e.’s Japanese portfolio brings Energy Vault’s global owned asset base — including acquired, under-construction, and operating assets — to more than 1 GW across energy storage and AI compute infrastructure. Once fully constructed and operational, this growing owned-asset portfolio is expected to support more than $180M in anticipated annual recurring EBITDA, reinforcing Energy Vault’s transition toward a capital-efficient, recurring revenue business model.
With the acquisition of BayWa r.e. now closed, Energy Vault intends to continue scaling its Japanese presence by advancing the acquired projects, evaluating additional development opportunities, and deploying storage solutions tailored to Japan’s grid needs, safety requirements, and long-term power market dynamics. The Company will also assess next-generation battery chemistries and customized storage configurations designed to maximize value in Japan’s evolving energy landscape.
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