Toyota Purchases Lithium Ion Mine in South America

Toyota is widely known as the worldwide leader in hybrid technology vehicles. These vehicles, such as the Toyota Prius, utilize a large battery along with a traditional engine setup. This combination power train provides great fuel economy, yet does not cost significantly more than a traditional gasoline powered vehicle. The battery style of choice for Toyota has always been the nickel metal hydride battery.

Nickel metal hydride has its advantages. It's safe to produce and utilize as well as safe to recycle. It has a high power output and can accept thousands of charges. It has a long battery life and is non-volatile, and relatively cheap to produce. The downsides of NiMH batteries are limited to its heavy weight and large dimensions.

Though Toyota strongly supports the use of NiMH batteries, they are also aware that other technologies exist that may offer some benefits for future products. For example, lithium ion batteries offer lower weight and smaller packages, yet are more costly and can be toxic.

Toyota recently suggested that lithium-ion technology may eventually trickle down into Toyota products in the future. The reasons for utilizing li-ion batteries are apparent. You can fit a higher output battery in the same area as a lower output NiMH battery and at the same time reduce the overall weight of the system. Now, the idea that Toyota will adopt the use of lithium-ion batteries appears to be imminent.

Toyota acquired a large portion of an Argentine lithium mining and production facility. Toyota's international trading company called Toyota Tsusho Corp along with Orocobre, will be jointly developing the Salar de Olaroz lithium project in Northwestern Argentina. Orocobre is the Australian based company who currently owns and operates the mining facility in Argentina.

Toyota's deal will grant them 25% ownership of the mine and production facility. In return for their investment, the company is promised a guaranteed access to the lithium mineral within the mining facility.

With the companies recent announcement regarding doubling production of hybrid vehicles and adding both electric vehicles and plug-in hybrid to their lineup, lithium batteries will likely be necessary. Buying batteries and purchasing raw materials to make li-ion batteries add considerable costs to cars, but now the company owns rights to a guaranteed amount of lithium, thereby reducing raw material costs in the future.

Toyota is a forward thinking company. By securing rights to lithium now, they will have access to the raw product when needed in the future. The company has several additional hybrids and electric vehicles in the works and many could benefit from lithium-ion power.