MUFG Bank and Hitachi expand NexGen to finance EV and charging assets

They plan to develop and scale special purpose vehicles to finance decarbonised transport.

MUFG Bank has inked a memorandum of understanding (MOU) with Hitachi to expand NexGen, their business co-creation model.

The new MOU expands NexGen beyond battery-focused structures as well as expands to additional markets outside the UK. Assets include electric vehicles and charging infrastructure and associated energy management systems.

There is also a possibility of extending to energy hubs supporting industrial assets, power grids, and data centers, MUFG and Hitachi said in a press release.

NexGen’s first business venture was a UK pilot project with First Bus, which saw MUFG and Hitachi create a special purpose vehicle (SPV) to support the procurement and operation of electrification assets for buses.

MUFG Bank and Hitachi said that they will also develop and scale SPV structures to finance decarbonised mobility assets for fleet and transport operations.

Global investment in electrified transport reached $750b in 2024, making it the largest segment of the energy transition worldwide, MUFG and Hitachi said. Yet many fleet operators still face limited access to capital as well as operation complexity when transitioning.

“Against this backdrop, Hitachi and MUFG Bank aim to expand NextGen as a repeatable model to accelerate implementation by combining structured asset financing with managed services and data-driven optimization,” the press release said.