Judicial troubles for Toyota which has been sued by the company Nippon Steel which filed an injunction in the Tokyo district court against the Japanese brand to prevent the automaker from producing and selling electric and hybrid vehicles that use a type of steel that is critical to engine performance. The Japanese steel producer claims that the auto brand has infringed its patent on electric steel sheets, claiming damages of around 20 billion yen (177 million dollars).
As explained by Automotive News Europe, electrical steel sheets are a type of high quality steel with improved magnetic properties that help contain energy losses. This type of material is used for “iron cores” fundamental for electric generators in power plants but also for electrical products, automobiles and even vibration motors in mobile phones.
Nippon Steel has not only sued Toyota but also another company, Baoshan Iron & Steel, asking for compensatory damages of around 20 billion yen. “Nippon Steel has filed lawsuits against Baosteel and Toyota on the basis of the belief that its patent relating to non-oriented electrical steel sheets, which are indispensable materials for the electrification of automobiles, has been infringed”, the Tokyo-based company said. “Nippon Steel has not been able to reach a peaceful resolution of the matter and so has decided to take these legal actions to protect its intellectual property rights in its products.” Toyota quickly dismissed the allegations, with one company spokesperson saying it was “very regrettable that we have been sued.”