Mazda expands On-site PPA with local suppliers to accelerate green manufacturing

Mazda is stepping up its use of renewable energy as part of its target to achieve carbon neutrality across all its global manufacturing plants by 2035.

The company's approach centres on three areas: improving energy efficiency, switching to renewable energy and introducing carbon-neutral fuels.

As part of its latest initiative, Mazda will introduce on-site power purchase agreements (PPAs) at its Mazda KD Center and Miyoshi Plant in Japan, working with partners including ORIX Corporation. The Mazda KD Center is scheduled to open in November 2026, and both sites will use battery energy storage systems to make better use of the electricity generated.

Solar power projects at two sites

The initiative covers two main locations, with a combined solar generation capacity of 3MW.

Mazda KD Center, Hiroshima City

• Solar panel capacity: 2.2MW
• Estimated first-year generation: 2.6GWh
• Expected start of electricity supply: November 2026

ORIX will provide the solar power generation facilities. Steel manufacturer Toyo Kohan Co., Ltd. will also make use of the environmental value associated with surplus electricity, helping extend the benefits of renewable energy across the local supply chain.

Miyoshi Plant and Miyoshi Safety Testing Laboratory 3, Miyoshi City

• Solar panel capacity: 0.8MW
• Estimated first-year generation: 0.9GWh
• Expected start of electricity supply: December 2026

Solar power generated at the site will be used directly by the facilities. Any surplus electricity will be stored in the MAZDA BATTERY STATION MIYOSHI system, which uses new automotive-grade lithium-ion batteries.

The storage system will help make use of excess solar generation and reduce electricity demand during peak periods.

Extending renewable energy benefits

The initiative goes beyond Mazda's own facilities. Other companies in the regional supply chain will also take part, including Toyo Kohan's Kudamatsu Plant and KEYLEX CORPORATION's Hofu Shop.

The partners will use a combination of on-site PPAs and virtual PPAs to share the environmental benefits of renewable electricity.

Mazda said it would continue working with partners to expand the use of renewable energy through shared technology and expertise. The company aims to support the transition to lower-carbon manufacturing while contributing to the environment, local communities and the wider automotive industry.