Toyota Tsusho Corporation, a trading company, has stepped up its electric vehicle (EV) materials strategy. It has invested USD 46.65M in Ta Chen Stainless Pipe Co., Ltd. (TCSP). The deal gives Toyota Tsusho a 2 per cent stake and secures a foothold in one of Asia’s major stainless steel and aluminium suppliers.
The move is designed to stabilise aluminium supply in North America, where demand for the lightweight metal continues to exceed supply. Aluminium is essential for EV lightweighting, especially in battery cases and covers. Toyota Tsusho already manufactures these through FUJIHATSU & TOYOTSU Battery Components (FTBC) in North Carolina.
With this investment, Toyota Tsusho ensures FTBC and other partners have a reliable stream of materials.
Toyota Tsusho emphasised that the purpose of this investment is to establish a long-term and stable supply system for aluminium. This should also cater not only to FTBC’s cell case applications via TKA but also to other aluminium needs in the EV supply chain. In the future, they aim to establish a closed-loop system that recycles aluminium scrap generated in the manufacturing processes of its supply partners.