Pouch Expansion Kit

Pouch Expansion Kits are a type of consumable key item in Xenoblade Chronicles 2 and Xenoblade Chronicles 2: Torna ~ The Golden Country. They can be used once per Driver to increase the amount of slots in the Pouch Setup menu by one, allowing two Pouch Items to be used at once.

Mechanics
Pouch Expansion Kits can be used from the Pouch Setup menu, provided one was not used before on the selected Driver, by selecting the "Expand" option. Once used, the Pouch Expansion Kit is consumed and a second slot is unlocked in the menu, allowing for a second pouch item to be used, provided it is not the same as the one currently used.

During, all sources of Pouch Expansion Kits will reset, allowing for an easier time collecting them if all of the Driver's pouches weren't expanded yet.

Item description
"Allows you to increase pouch capacity. Use in the Pouch Setup menu."

In Xenoblade Chronicles 2
There are exactly six Pouch Expansion Kits available, one for each playable Driver, two of which are given automatically through story progress.
 * Given after defeating Dughall (boss) near the end of Chapter 2.
 * Found in a treasure chest inside Brigands' Hideout in the Upper Level - Right of Gormott.
 * Found in a treasure chest at the edge of a cliff in the of Mor Ardain, accessed by riding a gondola starting from Smùide Mountain in Alba Cavanich then jumping off it to a plateau to the west of Turbine Tower.
 * Found in a treasure chest on a small floating island in the Fonsett Waters in Leftheria. It is accessed by jumping on a small moving island from the promontory at Godsford Isle then jumping on the second small floating island it passes by. The moving island will always be waiting at the promontory upon skip traveling to the, making retrying easy in case it is missed.
 * Given after defeating Giga Rosa (boss).
 * Found in a treasure chest in the Vault of Heroes, behind a crest-marked wall opened by a Lockpicking level 6 and Ancient Wisdom level 5 check, in the  of Spirit Crucible Elpys.