Japan expands lithium hunting with Idemitsu Australia push (updated)

Delta Lithium

16/06/2023 08:22

(Adding detail, quotes, background)
    By Katya Golubkova and Yuka Obayashi
       TOKYO, June 16 (Reuters) - Japan's Idemitsu Kosan Co
 5019.T  said on Friday it has increased its stake in Australian
lithium company Delta Lithium Limited (DLI)  DLI.AX  to 15% as
it expands in rare metals essential for the transition to green
energy.
    The move comes amid a global push by automakers to electrify
their fleets which has sparked a rush for stable supplies of
lithium and other battery metals.
    Securing critical minerals is also key for Japan's goal to
be carbon-neutral by 2050 and its aim for renewable energy to
make nearly 40% of its electricity by the end of this decade.
    Idemitsu said it raised its stake in DLI from 2.3% and its
total investment in the company now stands at 53 million
Australian dollars ($36.44 million). DLI is exploring two
lithium-mine projects in western Australia.
    Idemitsu, which has also invested in Australia's Vecco Group
and Critical Minerals Group, both of which are developing
vanadium mining projects, said it may increase its stake in DLI
further if exploration and development at Ida and Yinnetharra
lithium projects are successful. 
    "We are interested in becoming an operator of a lithium
project in the future," said Kohei Akatsuka, a group leader of
Idemitsu's coal and energy solution department.
    Idemitsu chose an Australian partner as Idemitsu has a
business foundation built on coal mining operations there over
the past 40 years, he said, adding relatively low geopolitical
risk was another reason.
    DLI will spend the extra funds to advance exploration and 
development studies, but no time schedule for production has
been set, Akatsuka said.
    Japanese trading house Mitsubishi Corp  8058.T  is also
looking to invest in lithium and nickel projects to meet growing
demand for electric vehicle (EV) batteries.
    In April, the Group of Seven (G7) countries pledged $13
billion in fiscal support to strengthen supply chains of
critical minerals. Japan has already secured a supplementary
budget of over 200 billion yen ($1.4 billion) for key minerals.
        ($1 = 1.4543 Australian dollars, $1 = 140.5400 yen)

 (Reporting by Katya Golubkova and Yuka Obayashi; Editing by
Simon Cameron-Moore and Elaine Hardcastle)
 ((ekaterina.golubkova@thomsonreuters.com;))