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Nippon Steel Corp. sued Toyota Motor Corp. and Baoshan Iron & Steel Co. (Baosteel) for $352 million in damages for patent infringement at a Tokyo District Court.
According to Nippon Steel, it is seeking $176 million in damages from each of the two firms that infringed their patents on non-oriented magnetic steel sheets used in electric vehicles.
Nippon Steel, Japan's biggest and the world's fifth-largest steelmaker by output, took legal action after failing to resolve with both firms.
Toyota described the lawsuit as "very regrettable" and said there were no patent infringement issues before it signed a supply deal with Nippon Steel.
Baosteel vowed to "firmly" defend its rights and interests as it did not agree with Nippon Steel's claims.
Nippon Steel also filed a petition for a preliminary injunction prohibiting Toyota from manufacturing and selling vehicles that use its patented electrical steel sheets.
A Nippon Steel spokesperson noted that the electrical steel sheets are indispensable for automobile electrification. It is also among their key products that help achieve decarbonization for cars, electrical products, and power plants.
It was Nippon Steel's first patent infringement lawsuit against Toyota.
