Toyota Tsusho Corporation ("Toyota Tsusho") announces that Toyota Tsusho and Australian lithium resource development company Orocobre Limited ("Orocobre"), its partner in the production of lithium carbonate, have decided to start production of lithium hydroxide in Naraha-machi, Futaba District, Fukushima Prefecture and have established a new joint venture company, Toyotsu Lithium Corporation. The company aims to commence production in first half of 2021.

Toyota Tsusho, together with Orocobre, began production of lithium carbonate at Argentina’s Salar de Olaroz at the end of 2014, and at the end of November 2018, it was decided to expand the production capacity. In addition to supplying lithium carbonate to meet the increasing demand for automotive rechargeable batteries, as the capacity of rechargeable batteries is expected to increase in conjunction with innovation in lithium battery technology, Toyota Tsusho has also decided to construct a production and supply framework for the raw material, lithium hydroxide.

Toyota Tsusho has established a lithium hydroxide production company in Naraha-machi, Futaba District, Fukushima Prefecture as a joint venture with Orocobre. A production plant will also be established in the same city. Toyota Tsusho plans to procure the raw materials (lithium carbonate) for the lithium hydroxide to be produced from its lithium production base in Argentina, Sales de Jujuy S.A. (“SDJ”), with a production capacity of 10,000 tons/year and a target of commencing production around first half of 2021. Our group company, Toyota Tsusho Material Incorporated will undertake 100 percent of sales and will sell the product not only for automotive rechargeable batteries but also for other industries. This operation is also eligible for subsidies from the Japanese Ministry of Economy, Trade and Industry. Toyotsu Lithium Corporation plans to hire more than 50 new employees, contributing to revitalization of the local economy and acceleration of reconstruction.

Through increasing the production of lithium carbonate and this project, Toyota Tsusho is working to meet the continually increasing demand for lithium accompanying the shift to electric vehicles.