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Toyota sources crucial steel product from China's Baowu

Top Chinese maker matches Japan rivals in quality of electrical steel sheet

Toyota has approved the quality of China Baowu's steel sheet for use in hybrid and electric vehicles and is already taking delivery in Japan. (Photo courtesy of Toyota)

TOKYO -- Toyota Motor will procure some of its electrical steel sheet from China Baowu Steel Group, China's largest steel supplier, in a move that could presage an era in which Japanese steel-makers will have to compete on price as well as quality, Nikkei has learned.

Steel sheet is a high-performance product and a crucial electric vehicle material, the production of which requires sophisticated technology. Because high quality is critical, Toyota has mainly sourced it from Japan's leading steel-makers.

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