Toyota Seals Deal for Lithium Supply for Hybrid, PHEV and EV Batteries

Toyota Seals Deal for Lithium Supply for Hybrid, PHEV and EV Batteries

By John O'Dell January 20, 2010

Toyota Motor Corp. has signaled its intent to increase use of lithium-ion batteries in its hybrids and other advanced vehicles, acquiring a sizable chunk of an Argentine lithium production facility through its international trading arm, Toyota Tsusho Corp.

The deal, announced late Tuesday, has Toyota Tsusho jointly developing the Salar de Olaroz lithium production project in northwestern Argentina with its Australian owner-operator Orocobre.

Toyota will take a 25 per cent stake in the $80-$100 million project in return for a guaranteed flow of lithium, a mineral salt typically collected in salt lakes or marshes. China and South America have some of the world's largest known lithium deposits.

The automaker has said it will add 10 new hybrids to its lineup in the next few years, is expected to double its annual hybrid production to one million vehicles a year in 2011, and is adding plug-in hybrid and battery-electric cars to its lineup - vehicles which need the lighter, more energy-dense batteries that are made using lithium.

Toyota - rarely one to miss an opportunity - also is using Toyota Tsusho to expand its presence in biofuels development. 

John O'Dell:  is an AutoObserver Senior Editor. Follow @AutoObserver on Twitter.