PowerX Signs Battery Farm Sales and Operations Agreement with Chugin Energy

TOKYO, JAPAN — PowerX, Inc. (Head Office: Tamano City, Okayama Prefecture; Director, President and CEO: Masahiro Ito; Securities Code: 485A) has signed a battery farm sales and operations agreement with Chugin Energy Co., Ltd. (Head Office: Okayama City, Okayama Prefecture; Representative Director: Shinichi Matsuoka), a subsidiary of Chugin Financial Group, Inc. The two companies have also signed a memorandum of understanding on the joint promotion of a local renewable energy production-for-local-consumption scheme utilizing battery storage.

This agreement is a comprehensive partnership covering the construction and operation of grid-scale battery farms, the co-location of battery storage at solar power plants and customer sites, and the regional utilization of electricity through these battery systems. Additionally, leveraging the customer base of Chugin Financial Group, Inc., the partnership will also promote the adoption of PowerX’s products, including battery energy storage systems and ultra-fast EV charging systems.

As the first initiative under this partnership, the "Matsue Shinji Battery Farm (tentative name)," with Chugin Energy as the project operator, is scheduled to commence operation in FY 2026. The facility will deploy battery energy storage systems manufactured by PowerX at its factory in Tamano City, Okayama Prefecture. By charging during periods of excess electricity supply and discharging during periods of high demand, the battery farm will contribute to stabilizing the power supply-demand balance in the Chugoku area, generating revenue through participation in various electricity markets, including the balancing market. PowerX will manage market operations after commissioning, and the two companies will also explore the development of a regional renewable energy utilization scheme leveraging the balancing capabilities of this battery farm.

PowerX and Chugin Energy will continue to jointly develop grid-scale battery farms and further contribute to the stabilization of regional power grids during the phase of renewable energy expansion.

1. System Ordered

A total of 3 units of PowerX’s "Mega Power 2700A" Grid-Scale Battery Energy Storage System

2. Battery Farm Details

• Project Location: Shinji-cho, Matsue City, Shimane Prefecture

• Number of Battery Containers: 3 units

• Nominal Capacity: 8,226 kWh (equivalent to the daily electricity consumption of approximately 720 average Japanese households)

• PCS Output: 1,999 kW

• Operator: Chugin Energy Co., Ltd.

• EPC (Engineering, Procurement, and Construction): MIRAIT One Corporation

• Commercial Operation Start Date: FY 2026 (scheduled)

3. Roles of Each Company in the Joint Promotion of the Local Renewable Energy Production-for-Local-Consumption Scheme

• Chugin Energy: Ownership of grid-scale battery farms, and introduction of battery farm operators, solar power plant operators, and electricity consumers to PowerX

• PowerX: Supply of complete equipment packages for grid-scale battery farms (battery energy storage systems, PCS, transformers, power receiving and transformation equipment, and post-commissioning maintenance services), battery farm operations, and electricity utilization through retail and wholesale electricity services

_{Revenue from this project is included in the consolidated earnings forecast for the fiscal year ending December 2026. The timing of press releases is determined by mutual agreement with customers and does not necessarily correspond to the timing or requirements of timely disclosure. This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.}