Tokyo — Japan’s Nippon Steel is suing customer Toyota Motor to stop it manufacturing and selling vehicles that contain specialised steel made by rival supplier Baoshan Iron & Steel of China, which it is also suing.
The company has supplied electromagnetic steel to Toyota for the Prius hybrid for more than two decades. The Chinese steelmaker in that incident was also Baosteel, according to a person familiar with the matter.The monetary damages sought are unlikely to have a significant impact on Toyota. The bigger concern would be if a court stopped it from using the Baosteel steel when it is ramping up production of electric vehicles.
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