Makita Battery Tender is going to bankrupt this month, according to a source close to the company.
The company, which operates four battery storage facilities in Japan, will need to find a buyer to secure a long-term contract.
The tender for the contract is scheduled to close on July 27, and it has been expected for about two weeks, the source said.
The contract is worth ¥7.7 billion ($1.5 billion), according to Reuters.
Makita was set to sell its battery storage business to Tokyo Electric Power Co. on June 30.
The deal was expected to save the utility about ¥2 billion ($250 million), but the tender was delayed.
Makina has a battery storage facility in Tottori prefecture, where it is owned by the Japanese government.
Makia is one of Japan’s biggest battery makers, producing more than 300,000 batteries a day, but has been struggling with the impact of climate change.
Its capacity has fallen by about 10 percent in the last three years, as the number of customers for the company has declined.
The utility has struggled to find alternative sources of power to power its plants as demand from electric vehicles and solar panels has surged.
The bid for the battery tender has raised questions about whether Makita will continue to produce battery cells at its Tottoro plant.
A Makita spokesperson declined to comment to Mashable.
The Japanese utility has faced a wave of public protests since a report by Greenpeace revealed that Makita has been storing its battery cells in a former factory at the site of the former Mitsubishi Electric factory.
Greenpeace also found that Makima has failed to comply with environmental regulations.
In a statement on June 29, Makita said it has received a number of letters from residents who are concerned about the safety of their homes and property.
Makima said it will review its decision to close the Tottora facility, which will continue operating under a contract that is valid for two years.
“We take all requests with consideration,” the company said.