The lithium nickel manganese cobalt oxide (NMC) that Sumitomo Metal Mining Co., Ltd. (SMM) manufactures as cathode material for use in lithium ion batteries was selected for use in the new Yaris hybrid car launched by Toyota Motor Corporation on February 10, 2020. As the number of electric vehicles grows against a backdrop of increasingly rigorous environmental regulations around the world, market expectations are building for the development and supply of high-performance secondary batteries. Over approximately the last 20 years, SMM has worked with customers including Toyota Motor Corporation and Primearth EV Energy Co., Ltd. to develop and manufacture cathode material for secondary batteries in electric and hybrid vehicles. Of the four main materials in secondary batteries (cathode material, anode material, electrolytic solution/electrolyte, separator), it is cathode material that holds the key to increasing the performance and capacity of the battery. Given the demand for electric vehicles with long cruising ranges and fuel-efficient hybrid vehicles, SMM expects demand to grow for its high-performance cathode material. SMM's NMC, which was selected by Toyota Motor, contributes to improved performance in lithium ion batteries for hybrid vehicles through optimization of the composition and physical properties of the cathode material, and provides support for the world class fuel efficiency of the new Yaris from the aspect of battery materials. SMM shall continue to identify customer requirements and market demands while making investments at the appropriate time and shall aim to achieve the establishment of a structure with a monthly production of 10,000 tons for battery cathode material outlined as a target for the battery materials business in its 2024 3-Year Business Plan (covering the years fiscal year 2025 - fiscal year 2027). It is also the desire of SMM to contribute further to tackling the challenges of environmental preservation and climate change faced by society by supplying low carbon- load products through an expansion of the company's battery materials business.