Toyota Tsusho Corp’s Rare Earth Reliance Exposed

Toyota Tsusho Corp’s stock price has been on a wild ride, with recent highs and lows that are anything but reassuring. The company’s addiction to rare earth exports, particularly from India’s IREL to Japan, has been laid bare for all to see. And what we’re seeing is a ticking time bomb that could blow the entire supply chain to smithereens.

• India is considering revising its 13-year-old agreement with Japan to conserve its rare earth reserves and reduce dependence on China.
• This move is driven by China’s curbed rare earth exports, which have put the squeeze on automakers and high-tech manufacturers worldwide.
• The writing is on the wall: Toyota Tsusho Corp may face potential supply chain disruptions that will impact its operations.

The rare earth market is a powder keg, and Toyota Tsusho Corp is sitting right on top of it. The company’s market performance will be influenced by these developments, and it’s anyone’s guess how this will play out. But one thing is certain: the status quo will no longer suffice. The time for change is now.

Toyota Tsusho Corp needs to take a long, hard look at its reliance on rare earth exports and start diversifying its supply chain. Anything less would be a recipe for disaster. The company’s future is at stake, and it’s time to take action. The clock is ticking, and the world will be watching.