Nippon Steel Co., Ltd. (hereinafter referred to Nippon Steel) announced on October 14, 2021 that it had sued Baowu Group and Toyota Motor to Tokyo District Court for infringing its patent rights related to electromagnetic steel plates and producing electromagnetic steel plates for Toyota Motor to manufacture electric vehicles, demanding that the two companies bear damages of 20 billion yen (about 1.1 billion yuan). 

Baowu Group responded that the patent certification should be based on rigorous and scientific technical exchanges and verification between the two parties. Baowu Group said it strictly abides by various laws and regulations, including intellectual property laws, and disagrees with Nippon Steel's unilateral claims. In view of the patent lawsuit filed by Nippon Steel, Baowu Group said it will actively respond to the lawsuit and resolutely defend the rights and interests of the company.

According to reports, the case involves high-grade "non-oriented electromagnetic steel plate" high-function steel, which is the key basic material to realize the conversion of electric energy into kinetic energy and energy conversion through the motor. Its performance directly affects the efficiency of energy conversion, and it is one of the irreplaceable core materials for the drive motor of new energy vehicles. In addition, as the first materials supplier for driving motors of new energy vehicles, Baowu Group has occupied 30% of the global market and 60% of the domestic market and is deemed as the preferred enterprise for world-renowned automobile factories.