Toyota Tsusho invests $46.65M in Taiwan’s TCSP to secure EV aluminium supply

Toyota Tsusho Corporation, a trading company, has stepped up its electric vehicle (EV) materials strategy. It has invested USD 46.65 million in Ta Chen Stainless Pipe Co., Ltd. (TCSP) through its US subsidiary TCI, which operates TCI Texarkana (TKA) in Arkansas. The deal, made through a third-party allotment, gives Toyota Tsusho a 2 per cent stake and secures a foothold in one of Asia’s largest stainless steel and aluminium suppliers.

Strengthening aluminium for EVs

The move is designed to stabilise aluminium supply in North America, where demand for the lightweight metal continues to exceed supply. Aluminium is essential for EV lightweighting, especially in battery cases and covers. Toyota Tsusho already manufactures these through FUJIHATSU & TOYOTSU Battery Components (FTBC) in North Carolina, set up in 2023 with Fujihatsu.

TCSP owns TCI Texarkana (TKA) in Arkansas, a facility producing aluminium coils. With this investment, Toyota Tsusho ensures FTBC and other partners have a reliable stream of materials. 

Also read: Role of aluminium in electric vehicle (EV) manufacturing: Powering the future to achieve net zero target

Closed-loop recycling ambition

Both companies confirmed that discussions on this partnership have been ongoing for nearly two years. Beyond securing supply, the two firms will explore closed-loop recycling. The plan is to recover aluminium scrap from EV manufacturing and reintroduce it as raw material at TKA, reducing waste and contributing to decarbonisation.

Toyota Tsusho emphasised that the purpose of this investment is to establish a long-term and stable supply system for aluminium. This should also cater not only to FTBC’s cell case applications via TKA but also to other aluminium needs in the EV supply chain. In the future, they aim to establish a closed-loop system that recycles aluminium scrap generated in the manufacturing processes of its supply partners.

The deal comes as automakers face raw material bottlenecks and rising sustainability pressures. By linking its North American EV operations with a Taiwanese metals powerhouse, Toyota Tsusho is building resilience while contributing to global carbon neutrality goals.

Also read: Aluminium- The metal to bet big on as the era of EVs unfold