UL Solutions to Develop an Advanced Automotive Electromagnetic Compatibility Laboratory in Japan

Rhea-AI Summary

UL Solutions (NYSE: ULS) has announced plans to develop an advanced automotive electromagnetic compatibility (EMC) testing laboratory in Toyota City, Japan. The facility, named UL Solutions Automotive Technology and Innovation Center, is set to open in the second half of 2026.

The 25,000 square-foot facility will feature high-voltage chambers capable of handling up to 25,000 RPM, over 3,500 torque, and power supply delivering up to 1,500 volts and 1,000 amp. Located in the Tokai region, a major automotive hub, the lab will help manufacturers test and protect against electromagnetic interference in vehicle systems.

The development aligns with Japan's position as the world's third-largest vehicle manufacturer, producing around 9 million vehicles in 2023. The automotive EMC testing market, valued at $1.7 billion in 2023, is projected to reach $2.7 billion by 2030.

Positive

• Strategic expansion into Japan's automotive hub, the world's third-largest vehicle manufacturer
• Facility will be among few EMC labs in Japan with high-voltage, high-current, and high-torque testing capabilities
• Positioning in growing EMC testing market projected to reach $2.7B by 2030
• Enhanced testing capabilities to support both domestic and international market demands

Negative

• Significant capital investment required for 25,000 sq-ft facility
• Extended timeline to operational status (2026 opening)
• Potential competition from existing EMC testing facilities in the region

Insights

Financial Analyst

UL Solutions' expansion into Japan's automotive testing market represents a strategic long-term investment in a growing sector. The planned 25,000-square-foot electromagnetic compatibility (EMC) laboratory in Toyota City positions the company directly within Japan's automotive manufacturing hub, the world's third-largest vehicle producer with 9 million vehicles in 2023.

This facility addresses a clear market opportunity in the automotive EMC testing space, which is projected to grow from $1.7 billion in 2023 to $2.7 billion by 2030, representing a 58.8% increase. The growth is driven by increasing electronic complexity in modern vehicles, creating higher demand for specialized testing services.

While the financial investment wasn't disclosed, the laboratory's strategic value lies in its specialized capabilities - high-voltage chambers handling 25,000 RPM, 3,500+ torque, and power supply up to 1,500 volts and 1,000 amps. This technical differentiation should allow UL Solutions to capture premium testing contracts from major automotive manufacturers.

The 2026 opening timeline means revenue impact will be delayed, but this expansion complements UL's existing facilities in Japan and strengthens its global testing network across key automotive markets. By establishing advanced infrastructure before the projected market growth accelerates, UL positions itself to capture market share in this specialized technical service niche.

Automotive Industry Expert

UL Solutions' new EMC laboratory addresses a critical need in today's automotive industry where electronic systems increasingly control vital vehicle functions. The planned facility in Toyota City demonstrates exceptional strategic foresight by targeting electromagnetic interference - a growing challenge as vehicles incorporate more complex electronics and faster processing.

The facility's location in the Tokai region delivers two key competitive advantages: proximity to Japan's major automotive manufacturers and positioning in the world's third-largest vehicle producing country. This co-location model reduces testing logistics costs and cycle times for manufacturers, creating an operational efficiency incentive for potential clients.

The technical specifications are particularly noteworthy. The 25,000 RPM, 3,500+ torque, and high-voltage capabilities position this as one of few facilities in Japan equipped for advanced simulation of real-world operating conditions. This addresses an emerging industry pain point as high-performance electric powertrains and advanced driver assistance systems require more sophisticated EMC testing protocols.

For automotive manufacturers, reliable EMC testing has become non-negotiable as electromagnetic interference can cause critical systems malfunctions in areas like braking and engine control. This testing helps manufacturers meet global standards requirements for market entry while providing essential protection against potential safety issues - making UL's specialized services increasingly valuable in a highly regulated industry.

UL Solutions plans to establish a state-of-the-art automotive electromagnetic compatibility testing laboratory in the Tokai region, co-located with Japan’s major automotive companies.

NORTHBROOK, Ill.--(BUSINESS WIRE)-- UL Solutions Inc. (NYSE: ULS), a global leader in applied safety science, today announced plans to develop a new advanced automotive electromagnetic compatibility (EMC) laboratory in Toyota City, Japan, to provide testing to help manufacturers protect against electromagnetic interference that can cause critical systems in vehicles, like braking and engine control, to malfunction.

UL Solutions plans to establish a state-of-the-art automotive electromagnetic compatibility testing laboratory in the Tokai region, co-located with Japan’s major automotive companies.

Today’s vehicles are equipped with more complex electronic components and faster processing speeds, which can lead to increased electromagnetic interference. EMC testing measures performance and reliability levels and helps manufacturers demonstrate adherence to global standards, enable legal market entry worldwide, and safeguard against malfunctions caused by interference. Demand for automotive EMC testing is expected to continue to expand and, as a top automotive manufacturing hub, Japan is a key market.

“Expanding our operations in Japan enhances our capacity and ability to deliver innovative science-based, independent EMC services,” said Jennifer Scanlon, president and CEO of UL Solutions. “Our new facility is strategically positioned to support both the domestic market and the growing demands of international exports.”

The facility, formally known as the UL Solutions Automotive Technology and Innovation Center, is expected to open during the second half of 2026, and will be developed in Japan’s Tokai region, a center for the automotive industry and a key customer base. It is expected to be one of the few EMC laboratories in Japan equipped to conduct high-voltage, high-current and high-torque testing, which can help simulate real-world operating conditions for various electronic devices and systems.

The development of the new testing laboratory by UL Solutions aligns strategically with Japan’s leadership in the global automotive sector. With 2023 production at around 9 million vehicles, Japan ranks as the third largest vehicle manufacturer globally.¹ This development coincides with the rising automotive EMC testing market, which, according to Market Research Guru, was valued at an estimated $1.7 billion in 2023 and projected to reach $2.7 billion by 2030.² The new facility will help address this increasing demand for advanced testing capabilities to help manufacturers demonstrate compliance with evolving automotive standards and technological innovations.

The planned 25,000 square-foot facility is expected to feature extremely high-voltage chambers capable of handling a maximum of 25,000 RPM, over 3,500 torque and a power supply delivering up to 1,500 volts and 1,000 amp. High-voltage, high-current and high-torque testing can help simulate real-world operating conditions for various electronic devices and systems.

“Japan stands as a pillar of the global automotive industry,” said Weifang Zhou, executive vice president and president of Testing, Inspection and Certification, UL Solutions. “The development of our advanced EMC testing laboratory in Japan further elevates our world-class testing capabilities, serving both the automotive industry and its suppliers. This strategic investment is expected to help solidify our comprehensive support for customers, helping them to confidently plan and execute successful vehicle market launches.”

The planned advanced automotive EMC laboratory in Toyota City will complement existing UL Solutions automotive EMC testing laboratories in Japan, including the Automotive Technology Center in Miyoshi City. It will also become part of a broader network of UL Solutions facilities staffed by knowledgeable EMC experts. These facilities are located in key automotive hubs in Asia and around the world, including India, Italy, South Korea, Taiwan, the U.K. and the U.S.

About UL Solutions

A global leader in applied safety science, UL Solutions (NYSE: ULS) transforms safety, security and sustainability challenges into opportunities for customers in more than 110 countries. UL Solutions delivers testing, inspection and certification services, together with software products and advisory offerings, that support our customers’ product innovation and business growth. The UL Mark serves as a recognized symbol of trust in our customers’ products and reflects an unwavering commitment to advancing our safety mission. We help our customers innovate, launch new products and services, navigate global markets and complex supply chains, and grow sustainably and responsibly into the future. Our science is your advantage.

¹ Motor vehicle production volume worldwide in 2023, by country, Statista

² Global Automotive EMC Testing Market 2024 by Company, Regions, Type and Application, Forecast to 2030, Market Research Guru, Jan. 2024

Certain statements in this press release, which are not historical facts, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These include, among other things, statements regarding the planned construction and opening of a new laboratory. These statements are neither promises nor guarantees and involve known and unknown risks, uncertainties and other factors that may cause our actual results or performance to differ materially from those expressed or implied by the forward-looking statements made in this press release, including the risk of unexpected delays or impediments to completing construction of the planned facility, including finalizing any necessary land lease arrangements for the planned facility, and the risks discussed in our filings with the Securities and Exchange Commission (the “SEC”), including our most recent Annual Report on Form 10-K, as well as other factors described from time to time in our filings with the SEC. Such forward-looking statements are made only as of the date of this press release. We do not undertake or assume any obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting such forward-looking statements, except to the extent required by law.

Source Code: ULS-IR

View source version on businesswire.com: https://www.businesswire.com/news/home/20250316415659/en/

Media:

Kathy Fieweger

Senior Vice President - Communications

Kathy.Fieweger@ul.com

+1 312-852-5156

Investors:

Dan Scott / Rodny Nacier, ICR Inc.

IR@ul.com

Source: UL Solutions Inc

FAQ

When will UL Solutions' new EMC testing facility in Toyota City open?

The facility is scheduled to open during the second half of 2026.

What are the technical specifications of ULS's new EMC testing facility in Japan?

The 25,000 sq-ft facility will feature chambers handling 25,000 RPM, 3,500+ torque, and power supply up to 1,500V and 1,000 amp.

How large is the automotive EMC testing market and its growth potential?

The market was valued at $1.7 billion in 2023 and is expected to reach $2.7 billion by 2030.

Where will ULS's new automotive EMC testing facility be located?

The facility will be located in Toyota City, in Japan's Tokai region, near major automotive companies.