 |
| Toyota and SMM Battery Cathode Materials |
Strategic Partnership for Advanced Battery Materials in EV Market
Japanese automaker Toyota and trading house Sumitomo Metal Mining (SMM) have partnered to develop cathode materials for all-solid-state batteries (ASSBs) used in battery electric vehicles (BEVs). This collaboration targets mass production of durable cathode materials, supporting Toyota’s plan to launch BEVs with ASSBs by 2027-28. The two firms began joint research in 2021 and have since created a highly durable cathode material.
Market Shift Drives SMM’s Battery Materials Business Revamp
SMM has shifted its focus from nickel-cobalt-aluminum oxide (NCA) to high-nickel nickel-manganese-cobalt (NCM) cathode materials due to evolving market demand. This transition resulted in halted production and significant impairment losses totaling ¥57.3 billion ($374 million) in the fiscal year 2024-25. Meanwhile, SMM aims for long-term capacity of 150,000 tons per year for nickel and 300,000 tons per year for copper, despite near-term challenges such as nickel oversupply and reduced copper refining charges.
Toyota’s Hybrid and Electric Vehicle Sales Trends
Toyota’s hybrid electric vehicles (HEVs) led global EV sales growth, selling 1.165 million units in Q2 2025, up 17% year-on-year. In contrast, plug-in hybrids and BEVs saw modest sales of 47,000 units each. The partnership with SMM aims to accelerate the shift toward all-solid-state batteries, which promise improved safety and energy density over conventional lithium-ion batteries.
ScrapInsight Commentary
Toyota and SMM’s collaboration marks a strategic pivot toward next-generation battery materials critical for BEV growth. Despite SMM’s current financial setbacks from market shifts, long-term nickel and copper capacity plans underscore confidence in metal demand recovery. The partnership supports a circular economy by advancing durable materials for EV batteries, potentially easing future recycling burdens.
