Nippon Kodoshi Corporation Chart

Key Personnel

Shunji Chikamori, president

Plants

Hirookakami, Aki, Yonago

Processes

Wetlaid, spunbonded

Major Markets

Separators for aluminum electrolytic capacitors, separators for lithium-ion batteries, separators for electric double-layer capacitors

Nippon Kodoshi was founded in 1941 and is a technology driven company based on traditional washi paper making techniques. The company manufactures separators for aluminum electrolytic capacitors, lithium-ion batteries (LiB), electric double-layer capacitors and alkaline dry cell batteries and holds an overwhelming market share of approximately 60% in the global market and approximately 95% in the domestic Japanese market for separators used in aluminum electrolytic capacitors.

These separators are made of wetlaid nonwoven fabrics based on traditional Japanese paper making techniques, and Nippon Kodoshi has established technology for the stable mass production of high-quality separators. Nippon Kodoshi’s revenue was $100 million in 2022, $92 million in 2023 and $100 million in 2024. In 2025, sales reached $117 million and operating income was $22 million yen, with a profit margin of 19%, an exceptionally high profit margin for a company that specializes in manufacturing wetlaid nonwoven fabrics. Furthermore, in 2026, sales of aluminum electrolytic capacitors are projected to reach $87 million, accounting for 75% of total sales, indicating that this segment is the mainstay of the business. Total sales for 2026 are projected to reach $132 million, of which $95 million is expected to come from aluminum electrolytic capacitors.

Although Nippon Kodoshi’s sales declined in 2023, they have been rising significantly since 2024. The main factor behind the recovery in business performance is growing demand for aluminum electrolytic capacitors and electric double-layer capacitors for AI servers, while demand for lithium-ion batteries is also increasing in the automotive and data center sectors.

As the production volume of capacitors and batteries increases, so does the consumption of the separators inserted inside them. Currently, the construction of data centers is surging worldwide, and construction is also picking up in Japan. As a result, production of AI servers is on the rise, and demand for aluminum electrolytic capacitors is growing at a faster than expected rate.

One of the new separator developments at Nippon Kodoshi is an electrolyte reinforcement sheet for all-solid-state batteries. Because current lithium-ion batteries use flammable liquids as electrolytes, fires involving them continue to occur. For this reason, development is underway on all-solid-state batteries that use nonflammable inorganic powders as electrolytes. However, since inorganic powders become weak and brittle when formed into thin sheets, the sheets require a reinforcing material. Nippon Kodoshi is developing a thin nonwoven fabric for use as a reinforcing material.