This extreme hypothetical
This extreme hypothetical assumes many things that aren't true, but are relevant to environmental impact.
1. that the supply of lithium is limited and less than that needed to replace existing ICE vehicles at a replacement rate based on consumer need.
2 That existing manufacturers can produce cars at a rate that satisfies demand for replacement vehicles.
3. That those new vehices whether ICE or EV are affordable enoiugh that existjng ICE owners won't retain their existing vehicles much longer than before because the new vehicles are higher profit margin due to being loaded with "features' that aren't being asked for and objectvely aren't needed.
4. That new vehicles are similar in TCO and TEI (total environmenjtal impact) to existing ones - including the cost of repair after colisions and probability of being "titalled:" due to repair costs..
5. That lithium is required for EV batteries.
Since these real world factors aren't considered, the hypothetical case is irrelevant, and extermely biased.
If I had one cow and 100 people needed something to drink, is it better to give 30 people cows milk or have everyone drink less less milk and die of thirst? It's the same as the example. There are othet things that people can drink bedies mik.
There are other battery chemistries than lithium that can power cars.
There are vehicles other than the 100 year old "car" design that don't weigh 1000# +6x the weight of the cargo, and require smaller batteries than imagined only EV alternative.
The "problem" is that Toyota has no alternative to the ICE or ICE + motor generator that can be deployed with existing infrastructure, and is unable to conceive of rapidly converting its exsting production. Hopefully that will change before Japan is devasted by multiple annual floods, and its coast areas disappear.
It's true that there weill be a continued need for some specialty ICE and diesel vehicles, and adoption will be constrained by power infrastructure, but adoption will not be delayed because there is no supply of afiordable BEVs from companies unwilling to make them. If Toyota won't provide them, it will lose market share to those who will.