"SYDNEY/TOKYO - A sister company to Toyota Motor Corp secured a lithium supply deal in Argentina on Wednesday that could help the world's largest automaker keep its lead in gasoline-electric hybrid cars.
The deal sent shares in the lithium project's owner and operator, Australian-listed Orocobre Ltd, soaring almost 50 percent to an all-time high.
Lithium, a highly reactive and versatile metal, is expected to be in increasing demand as carmakers choose costly but more efficient lithium-ion batteries to power hybrid and electric vehicles.
'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.'"
Eriko Amaha and Nathan Layne report for Reuters January 22, 2010.
"Toyota In Argentine Lithium Deal For Hybrid Car Push"
Source: Reuters, 01/22/2010
