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."
Toyota Tsusho Corp, a trading house and key Toyota supplier 22 percent-owned by the automaker, said it would jointly develop a new lithium project in Argentina with Orocobre.
Orocobre shares jumped to a record peak of A$2.04 in its heaviest ever trading volume. The stock has risen almost 10-fold in the past 12 months, and closed up 32 percent at A$1.85.
Toyota Tsusho rose 6 percent, while Toyota Motor's stock ended down 0.9 percent, roughly in line with other auto shares.
