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Business Standard
11-08-2025
- Business
- Business Standard
Lithium stock rally as CATL mine halt raises prospects of tighter supply
Shares of U.S.-listed lithium producers surged on Monday after Chinese battery giant Contemporary Amperex Technology (CATL) halting output at a major mine raised hopes it would erode the oversupply in a market grappling with soft demand. In premarket trading, Albemarle Corp jumped nearly 9 per cent, while Chile's Sociedad Quimica y Minera rose 6.5 per cent and Lithium Americas gained nearly 9 per cent. Smaller companies, Standard Lithium, Piedmont Lithium and Sigma Lithium advanced between 5.6 per cent and 13.8 per cent. Chinese and Australian miners also rallied. The lithium sector has been struggling with a glut following weaker-than-anticipated growth in demand for electric vehicles. The most active lithium carbonate futures in Guangzhou rose the 8 per cent daily limit after CATL said its mining license for the Yichun project in Jiangxi province expired on Aug. 9 and renewal was underway. The site can produce more than 46,000 metric tons of lithium carbonate equivalent a year, roughly 3 per cent of the global supply forecast for 2025, according to data from the Australian government. Analysts at Morgan Stanley said the outage could erode the small 60,000-tonne surplus it expects for 2025, bringing "upside risk to lithium prices in the short term" and potentially moving the market closer to balance if other disruptions follow. Longer-term, it expects a surplus to re-emerge without further supply discipline. Morningstar analyst Vincent Sun said the suspension was "an indication that the industry is taking proactive steps to contain further lithium price falls observed year-to-date." With lithium prices now below the marginal cost of production, the move could be perceived as a positive driver to limit supply growth and rebalance the market, he said, but added it was "still too early to confirm a price recovery trend for the rest of the year."
Reuters
30-06-2025
- Automotive
- Reuters
Breakingviews - Tariffs will extend Toyota's lead over Japan Inc
HONG KONG, June 30 (Reuters Breakingviews) - Tariffs will accelerate Toyota Motor's (7203.T), opens new tab advantage. The world's largest carmaker is barely raising its prices in the U.S., despite President Trump's 25% levy on auto imports. If Tokyo fails to win a reprieve, manufacturers with slimmer margins will struggle to emulate the $222 billion company and could lose market share fast. Toyota said this month that it will raise prices for some vehicles sold in the country by an average of $270 as part of a regular review. This represents just 0.7% of the mean unit price for a Toyota car sold in North America, according to Visible Alpha. Other Japanese carmakers appear to have opted for similar tactics in the first month of tariffs: the value of auto imports from Japan to the U.S. fell 24.7% in May from a year earlier, though volumes dropped just 3.9%, according to official trade data released on June 18. These numbers suggest importers lowered the price of vehicles before duties, in effect absorbing the cost of levies rather than letting sticker prices rise. For most companies, that strategy will not be sustainable. Toyota's operating margin was 10% in the financial year that ended in March, while the average for a basket of its domestic peers was 5%. That gives Toyota exceptional flexibility to keep prices stable; even if it absorbed costs associated with the levies, operating profit would only decline some 7%, Morningstar analyst Vincent Sun calculates. By contrast, Honda Motor (7267.T), opens new tab would face a 25% drop in earnings if it tried the same approach, while struggling Nissan Motor's (7201.T), opens new tab operating loss would grow by nearly a third, Sun reckons. In the end, weaker companies will have little choice but to ask customers to foot the bill. Even if a U.S.-Japan bilateral trade agreement were to halve the levies, Japanese importers stateside would probably still have to pass through about 80% of the impact to consumers, consultancy AlixPartners estimates. That bodes ill for their market share. Those who can't avoid hiking may lose out to Toyota or, worse for Japan, to non-Japanese brands like Tesla (TSLA.O), opens new tab. That would hurt: the U.S. is the largest single market for Honda and Nissan, and imports to the country accounted for more than a tenth of their global sales volume in 2024. Toyota might be able to cope with the tariff pain if it endures, but Japan Inc., overall, will lose. Follow Katrina Hamlin on Bluesky, opens new tab and Linkedin, opens new tab.
Asahi Shimbun
03-06-2025
- Automotive
- Asahi Shimbun
Toyota to take key supplier private in $33 billion deal
Toyota Motor will take forklift-maker Toyota Industries private in a $33-billion deal, the companies said on Tuesday, a landmark unwinding of cross-shareholding that is likely to strengthen the influence of the group's founding Toyoda family. Going private will allow Toyota Industries to take a longer-term business perspective, the companies said. Japanese conglomerates are under increasing pressure to unwind stakes in each other as part of a government push for better governance. "It streamlines the cross-shareholdings a bit within the group," said Vincent Sun, a senior analyst at Morningstar. "We think it makes sense for Toyota Motor to have a stake in Toyota Industries to leverage on any potential autonomous (logistics) technology in the future." The total acquisition cost for the Toyota Group will be around 4.7 trillion yen ($33 billion), a spokesperson said. That includes a $26 billion tender offer for shares of Toyota Industries at 16,300 yen apiece, well below the closing price of 18,400 yen on Tuesday before the deal was announced. A new holding company will be set up for the deal, the companies said. Group real estate company Toyota Fudosan will invest 180 billion yen, while Akio Toyoda, Toyota Motor's chairman, will invest 1 billion yen. Toyota Motor will invest 700 billion yen in non-voting preferred shares. Toyota Motor and group companies Aisin, Denso and Toyota Tsusho will all sell their shares in Toyota Industries and acquire their own shares now held by it. "Toyota Group is focusing on the movement of people, goods, information, and energy as it progresses towards transforming into a mobility company," the companies said, adding that Toyota Industries would focus on the transport of goods. While the deal was widely expected, the price may come as something of a shock. Media reports had indicated the tender offer would be around $42 billion, a 62% premium to the actual offer. Toyota had said in April it was considering participating in a potential buyout of Toyota Industries. Toyota owned about 24% of Toyota Industries as of September last year, while Toyota Industries held around 9% of the world's biggest automaker and more than 5% of Denso. Toyota Industries, formerly Toyoda Automatic Loom Works, was founded in 1926 by Sakichi Toyoda to make automatic looms. An automotive division within the company was set up and later spun off as Toyota Motor.
Yahoo
03-06-2025
- Automotive
- Yahoo
Toyota to take key supplier private in $33 billion deal
TOKYO (Reuters) - Toyota Motor will take forklift-maker Toyota Industries private in a $33 billion deal, the companies said on Tuesday, a landmark unwinding of cross-shareholding that is likely to strengthen the influence of the group's founding Toyoda family. Going private will allow Toyota Industries to take a longer-term business perspective, the companies said. Japanese conglomerates are under increasing pressure to unwind stakes in each other as part of a government push for better governance. "It streamlines the cross-shareholdings a bit within the group," said Vincent Sun, a senior analyst at Morningstar. "We think it makes sense for Toyota Motor to have a stake in Toyota Industries to leverage on any potential autonomous (logistics) technology in the future." The total acquisition cost for the Toyota Group will be around 4.7 trillion yen ($33 billion), a spokesperson said. That includes a $26 billion tender offer for shares of Toyota Industries at 16,300 yen apiece, well below the closing price of 18,400 yen on Tuesday before the deal was announced. A new holding company will be set up for the deal, the companies said. Group real estate company Toyota Fudosan will invest 180 billion yen, while Akio Toyoda, Toyota Motor's chairman, will invest 1 billion yen. Toyota Motor will invest 700 billion yen in non-voting preferred shares. Toyota Motor and group companies Aisin, Denso and Toyota Tsusho will all sell their shares in Toyota Industries and acquire their own shares now held by it. "Toyota Group is focusing on the movement of people, goods, information, and energy as it progresses towards transforming into a mobility company," the companies said, adding that Toyota Industries would focus on the transport of goods. While the deal was widely expected, the price may come as something of a shock. Media reports had indicated the tender offer would be around $42 billion, a 62% premium to the actual offer. Toyota had said in April it was considering participating in a potential buyout of Toyota Industries. Toyota owned about 24% of Toyota Industries as of September last year, while Toyota Industries held around 9% of the world's biggest automaker and more than 5% of Denso. Toyota Industries, formerly Toyoda Automatic Loom Works, was founded in 1926 by Sakichi Toyoda to make automatic looms. An automotive division within the company was set up and later spun off as Toyota Motor. ($1 = 142.6500 yen) ($1 = 142.8500 yen) Sign in to access your portfolio
Business Times
03-06-2025
- Automotive
- Business Times
Toyota to take key supplier private in US$33 billion deal
[TOKYO] Toyota Motor will take forklift-maker Toyota Industries private in a US$33 billion deal, the companies said on Tuesday (Jun 3), a landmark unwinding of cross-shareholding that is likely to strengthen the influence of the group's founding Toyoda family. Going private will allow Toyota Industries to take a longer-term business perspective, the companies said. Japanese conglomerates are under increasing pressure to unwind stakes in each other as part of a government push for better governance. 'It streamlines the cross-shareholdings a bit within the group,' said Vincent Sun, a senior analyst at Morningstar. 'We think it makes sense for Toyota Motor to have a stake in Toyota Industries to leverage on any potential autonomous (logistics) technology in the future.' The total acquisition cost for the Toyota Group will be around 4.7 trillion yen (US$33 billion), a spokesperson said. That includes a US$26 billion tender offer for shares of Toyota Industries at 16,300 yen apiece, well below the closing price of 18,400 yen on Tuesday before the deal was announced. A new holding company will be set up for the deal, the companies said. Group real estate company Toyota Fudosan will invest 180 billion yen, while Akio Toyoda, Toyota Motor's chairman, will invest one billion yen. Toyota Motor will invest 700 billion yen in non-voting preferred shares. Toyota Motor and group companies Aisin, Denso and Toyota Tsusho will all sell their shares in Toyota Industries and acquire their own shares now held by it. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'Toyota Group is focusing on the movement of people, goods, information, and energy as it progresses towards transforming into a mobility company,' the companies said, adding that Toyota Industries would focus on the transport of goods. While the deal was widely expected, the price may come as something of a shock. Media reports had indicated the tender offer would be around US$42 billion, a 62 per cent premium to the actual offer. Toyota had said in April it was considering participating in a potential buyout of Toyota Industries. Toyota owned about 24 per cent of Toyota Industries as of September last year, while Toyota Industries held around 9 per cent of the world's biggest automaker and more than 5 per cent of Denso. Toyota Industries, formerly Toyoda Automatic Loom Works, was founded in 1926 by Sakichi Toyoda to make automatic looms. An automotive division within the company was set up and later spun off as Toyota Motor. REUTERS
