Toyota employs nickel-metal-hydride batteries for the current Prius hybrid but has decided to use lithium-ion batteries for future plug-in models. "When it comes to mass production of hybrids, the main hurdle has been a shortage of batteries," said Yoshihiko Tabei, chief analyst at Kazaka Securities.
"Toyota is taking a step on its own to secure the materials it needs to ensure stable production." Toyota Tsusho Corp, a trading house 22 percent-owned by Toyota, said it would jointly develop a new lithium project in Argentina with the project's owner and operator, Australian-listed Orocobre Ltd.
Orocobre shares jumped by as much as 47 percent to a record high of A$2.04 in its heaviest ever trading volume. The stock has risen almost 10-fold in the past 12 months, and closed up 32 percent at A$1.85. Toyota Tsusho rose 6 percent, while Toyota Motor's stock was down 0.9 percent, roughly in line with other auto shares.
The Salar de Olaroz project in Argentina is estimated to cost around $80-$100 million, with the final figure to be determined after a feasibility study, Orocobre spokesman Paul Ryan said, adding the study should be complete by end-September. "As environmentally friendly electric car demand continues to grow, Toyota Motor Corp will have the opportunity to become a cornerstone offtake customer," Orocobre said in a statement. Orocobre went public in December 2007 and now has a current market capitalisation of nearly A$150 million.