Japanese automaker Toyota plans to purchase electric steel sheets from China Baowu as the carmaker looks to diversify its raw materials supply chain for manufacturing electric vehicles (EVs).
According to media reports, this is the first time a Japanese automaker is using materials from China to manufacture its vehicles. China Baowu will supply a limited number of such sheets to Toyota. An executive of the latter told media that the quality was as good as Japanese steel. He added that Toyota was increasing its focus on EVs as it saw a growth in this car segment globally.
Baowu also recently started supplying materials to the largest global EV producer, Tesla. Electric steel sheets are an essential material used in the production of electric vehicles (EVs).