Toyota may invest in mining lithium to secure supply

Toyota has pumped millions of dollars into an Australian project in Argentina to secure lithium supplies for future electric and hybrid cars. The company has already entered into agreements with Panasonic and Sanyo for the supply of large-format lithium-ion batteries for its electric-powered cars. It also holds stakes in Fuji Heavy Industries that has interests in NEC’s lithium and manganese battery technology. However, according to industry watchers, this is the first time the biggest carmaker in the world has made direct investments in mining the raw materials. Its trading arm, Toyota Tsusho, the sixth biggest trading company in the world, has taken a 25% interest in Argentina’s Olaroz lithium-potash project, which is expected to start development later this year. Toyota holds a 21.8% stake in Toyota Tsusho. The project’s feasibility study on which Toyota will spend US$5 million will be completed by the end of the year. Production of lithium is expected to begin by 2012. (January 21, 2010)