Hitachi Ltd and MUFG Bank have officially signed a new Memorandum of Understanding (MoU) to dramatically expand NextGen, a co-creation business model designed to dismantle the financial and operational barriers to net-zero mobility.

The partnership addresses the two main barriers to electrification: access to capital and integrated energy solutions

The announcement, made today (27 March 2026), marks a significant evolution of a partnership first launched in 2024. By merging Hitachi’s technology and operational expertise with MUFG’s financial capabilities, the ‘NextGen’ model aims to provide a ‘one-stop-shop’ for fleet operators struggling to navigate the transition to electric vehicles.

The NextGen framework was first validated through a successful UK-based pilot with First Bus via a special purpose vehicle (SPV). That project utilised a ‘Battery-as-a-Service’ model, allowing the transport provider to avoid the massive upfront costs of EV batteries by treating them as a managed, financed service.

This expanded MoU extends NextGen beyond battery-focused structures, enabling broader and more scalable deployment across additional markets outside the UK and across a wider range of asset classes. These include e-mobility assets such as electric vehicles and charging infrastructure, associated energy management systems, and potentially extending to energy hubs supporting industrial assets, power grids and data centres.

The partnership addresses the two main barriers to electrification: access to capital and integrated energy solutions.

Hitachi and MUFG Bank will also develop and scale SPV structures to finance decarbonised mobility assets for fleet and transport operators. This approach removes capital constraints and accelerates implementation, enabling operators to focus on their core transport services.

From Hitachi’s side, the initiative is led by its Strategic SIB Business Unit, bringing together expertise from across Hitachi including Hitachi Energy, as ‘One Hitachi’.

Hitachi intends to further advance and streamline mobility and charging infrastructure operations by expanding its HMAX suite – a digital solution powered by Lumada 3.0 and AI – to optimise how assets perform in real-time.

Demonstrating the immediate scalability of the model, Hitachi and MUFG also announced a separate agreement with Boreal Norge AS, one of Norway’s largest transport providers. With a fleet of 850 buses and 35 ferries, Boreal represents a massive opportunity to apply the NextGen model to multi-modal transport.

Jun Taniguchi, CEO of Hitachi’s Strategic SIB Business Unit, said: “By improving the performance of assets such as batteries and charging infrastructure through Hitachi’s digital services led by HMAX, we can truly help customers optimise the total cost of ownership.”

Masakazu Osawa, senior managing executive officer chief executive, Japanese Corporate & Investment Banking Business Unit of MUFG Bank Ltd, said: “For the global EV market, our focus is not only on strengthening Hitachi’s leading position in Battery-as-a-Service, but also on fostering a holistic value chain – including second‑life battery markets – that supports the acceleration of electric mobility and the achievement of 2050 net zero targets.”