In April 2024, the Toyota Tsusho Group made Terras Energy Corporation (formerly SB Energy Corp.) a wholly owned subsidiary. ^* Together with the acquisition of Eurus Energy Holdings Corporation as a wholly owned subsidiary in August 2022, this has made our corporate group one of the largest power generation operators in Japan, not only in wind power generation but now also in solar power generation. With these initiatives at the core, we will further accelerate our efforts to expand the use of renewable energy and contribute to the creation of a better global environment.
^* Toyota Tsusho acquired 85% of Terras Energy’s shares from SoftBank Group in April 2023 and later acquired the remaining 15% in April 2024.

Initiatives of Terras Energy

Terras Energy operates solar and wind power generation businesses, an energy storage systems business, and an energy management business. Leveraging its strengths in knowledge and experience in operating renewable energy power plants, the company, such as by handling grid-connected storage batteries from development to operation and engaging in renewable energy aggregation and storage control, aims to expand its business and meet the diverse energy-related needs of its customers to promote the use of renewable energy. The total power generation capacity of Terras Energy’s solar, wind, and biomass power plants, which are located at 50 sites across Japan from Hokkaido to Kyushu and Okinawa, is approximately 773 MW (as of January 2023), which is equivalent to the annual electricity consumption of approximately 334,000 households.

Aluminum is said to be the most effective replacement for iron to reduce vehicle weight. Since 1998, Toyota Tsusho has been supplying recycled secondary aluminum alloy ingots in a molten state, which has better CO₂ emissions reduction effects, and is one of the world's top suppliers.

Even though it is still aluminum, the supply of molten recycled aluminum can generally be expected to have about a 98% CO₂ emissions reduction effect compared to the use of new aluminum ingots refined using massive amounts of energy.

Demand for aluminum is expected to increase in the future due to electrification and further weight reduction. Thus, we are developing technologies to increase the value and utilization rate of low-grade aluminum scrap and promoting smart factories to increase energy efficiency.

As a part of the circular recycling business that Toyota Tsusho is developing, we are reinforcing functions in the aluminum recycling value chain from upstream to downstream.

From the perspective of mobility, the widespread uptake of next-generation eco-cars is a key factor in reducing CO₂ emissions and combating climate change. We have been producing lithium carbonate at Salar de Olaroz, Argentina since the end of 2014 together with Allkem Limited (formerly Orcobre Limited), in an effort to ensure a stable supply. By enhancing our production capacity to meet the robust demand, we are aiming to build a long-term, stable lithium supply structure.

Toyotsu Lithium Corporation, Japan's first company specializing in lithium hydroxide production, began operations in 2022. Lithium hydroxide is a raw material for the cathode material of automotive lithium-ion batteries. Demand for lithium hydroxide is expected to increase with the accelerated spread of electrified vehicles and improvements in battery performance. Therefore, a stable supply is required.

Toyotsu Lithium's production capacity is 10,000 tons/year. However, in order to meet the expectations of the rapidly expanding lithium-ion battery market, the company is looking to expand its production capacity in the future, as well as to expand overseas.