Toyota Tsusho Acquires Radius: The Green Steel Era Begins

In an exciting new development, Toyota Tsusho, part of the Toyota Group, has announced the acquisition of Radius Recycling, a major industrial metals recycler based in Portland, Oregon. This deal, valued at approximately $907 million, is set to be finalized in the third quarter of 2025. The purchase marks a significant step in Toyota Tsusho’s sustainability strategy and its push towards creating a more circular economy. But what does this mean for Toyota and the future of its vehicles? Let’s explore how this acquisition could shape the automotive giant’s future.

Radius Recycling: A Key Player in the Industry

Radius Recycling, formerly known as Schnitzer Steel, is one of the largest independent recyclers in the United States. The company operates over 100 sites across the U.S., Puerto Rico, and parts of Western Canada, focusing on recycling metal scrap and end-of-life vehicles. With a history dating back to 1906, Radius processed an impressive 4.5 million long tons of ferrous metal and 334,000 long tons of nonferrous metal in 2024.

What makes Radius particularly valuable is its expertise in recycling scrap metals, which are used to produce recycled steel products like rebar. Additionally, the company has a division known as Pick-n-Pull, which resells used car parts. This dual focus on scrap metal and vehicle recycling gives Toyota Tsusho a significant opportunity to enhance its operations in the rapidly growing green steel sector.

Why Did Toyota Tsusho Make the Acquisition?

For Toyota Tsusho, acquiring Radius Recycling aligns perfectly with its long-term sustainability goals. As a key player in the Toyota Group, Toyota Tsusho has been committed to reducing environmental impacts across its supply chains. By acquiring Radius, the company intends to leverage its recycling network to expand its circular economy strategies, particularly in the automotive industry.

One of the primary motivations behind this acquisition is the growing demand for "green steel." This is a type of steel made from recycled metal rather than virgin iron ore, resulting in significantly reduced carbon emissions during production. Toyota Tsusho plans to utilize Radius’ capabilities to supply automotive manufacturers with this more sustainable form of steel. With metal recycling becoming increasingly important due to rising tariffs and material prices, this move positions Toyota Tsusho to stay ahead of the curve.

In addition to green steel, Toyota Tsusho aims to increase its collection volume of precious metals from catalytic converters, which could play a crucial role in the growing demand for sustainable materials in the automotive industry. Furthermore, Toyota Tsusho is working on creating a closed-loop recycling platform for batteries, aligning with the broader shift towards electric vehicles (EVs).

The Impact on Toyota’s Future Vehicles

This acquisition has significant implications for the future of Toyota vehicles. As part of Toyota Tsusho’s broader sustainability strategy, this acquisition will support the development and manufacturing of vehicles that are more environmentally friendly.

• Sustainable Manufacturing Materials: With access to an expanded collection of recycled metals, Toyota can produce vehicles that are not only made from more sustainable materials but also come with a reduced carbon footprint. Green steel and recycled metals are poised to become integral components of future Toyota vehicles, especially as the company moves further into electrification and green technologies.
• Supporting Electric Vehicle Growth: Toyota Tsusho’s push to create a circular platform for battery recycling also indicates a clear focus on supporting Toyota’s EV production. With the rise of electric vehicles and the need for more sustainable solutions to source materials for EV batteries, this move positions Toyota to better supply the components required for its growing lineup of electric cars and trucks.
• Enhancing Circular Economy Practices: The acquisition of Radius Recycling will help Toyota Tsusho push forward its circular economy initiatives. This includes reducing waste by recycling materials from end-of-life vehicles and using those materials in the production of new vehicles. For Toyota, this is a step toward ensuring that materials used in vehicle production are reused and recycled, minimizing the environmental impact of manufacturing processes.
• Improved Supply Chain Resilience: By integrating Radius’ vast network into its supply chain, Toyota Tsusho strengthens its control over key materials needed for vehicle manufacturing. This is particularly important in a time when global supply chains are under strain, and metal prices are volatile due to factors like tariffs and trade tensions. By securing a steady and sustainable source of recycled materials, Toyota can mitigate some of these risks and enhance its supply chain resilience.

Economic and Environmental Benefits

While the acquisition is a strategic business move, it also brings significant economic and environmental benefits. From an economic standpoint, Toyota Tsusho is investing in an established player in the recycling industry, and this acquisition is expected to help stabilize the supply of recycled metals, which are crucial for manufacturing various components in Toyota vehicles.

On the environmental side, the acquisition is a major step toward reducing the carbon footprint of Toyota’s operations. By increasing the supply of green steel and other recycled materials, Toyota Tsusho can contribute to the company’s broader goal of achieving carbon neutrality and reducing the environmental impact of its manufacturing process.

The Bigger Picture: Toyota’s Commitment to Sustainability

Toyota has long been a leader in automotive sustainability, and this acquisition is a testament to its commitment to environmentally responsible manufacturing practices. The company has set ambitious sustainability goals, including reducing carbon emissions from its manufacturing processes and increasing the use of renewable energy. Through its partnership with Radius Recycling, Toyota Tsusho is now better positioned to continue on this path by securing a sustainable supply of key materials.

This acquisition also reflects the industry-wide shift towards circular economies, where waste and by-products are reused to create new products. Toyota’s efforts in this area are expected to resonate with consumers who are increasingly prioritizing sustainability in their purchasing decisions.

Toyota Tsusho’s acquisition of Radius Recycling is more than just a business transaction; it’s a strategic move that aligns with Toyota’s long-term sustainability and circular economy goals. As the automotive industry continues to evolve and shift towards electric and sustainable vehicles, this acquisition will play a crucial role in ensuring Toyota remains at the forefront of innovation in green manufacturing. With an expanded supply of recycled metals and a strengthened ability to provide green steel, Toyota’s future vehicles are set to be more environmentally friendly than ever before. The ripple effects of this acquisition will likely be felt across Toyota’s global operations, further reinforcing its commitment to sustainability and environmentally responsible manufacturing.