This Autozine.org blurb points to Toyota's initial use of Nikasil around year 2000 ?
Like many high tech aluminium engine, the 2ZZ-GE gets Nikasil treatment instead of using cast iron liner as a means to reduce friction and wear. Yamaha is one of the few experts in the world having the Nikasil treatment facilities (Ford’s Zetec is treated there), thus Toyota is eager to ask it to assemble the 2ZZ-GE engine. Its work does not stop there. Base on Toyota’s VVT-i variable valve timing system, Yamaha developed the VVTL-i which also incorporates variable lift control. You must know that variable lift is so important to top end power. Without it the new engine can never reaches a maximum power of 180hp at 7600rpm. Basically, the mechanism is a combination of the continuously phase-shifting variable timing (VVT-i) and a 2-stage cam-changing variable lift like Honda’s VTEC, but the implementation differs a bit from Honda thus avoid violating the rival’s patent. Once exceeding 6,000rpm, the high speed cams take over and the engine can rev for another 2 thousand rev. If you are interested in a more detailed explanation to the VVTL-i, click HERE to AutoZine Technical School.
You may ask why the Toyota’s unit does not pump out as many horsepower per litre as Honda’s Civic Type R, Integra Type R or S2000. Very simple, Toyota’s engine is a fully mass production engine without the hand-intensive treatment required by the special Hondas, such as forged pistons / con-rod / counter weights etc. Take a normal Integra GSR’s VTEC and you’ll notice the superiority of Toyota’s VVTL-i, especially is low and mid-rpm torque, thanks to its additional continuously variable valve timing.