Japan expands lithium hunting with Idemitsu Australia push

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)

(By Katya Golubkova and Yuka Obayashi; Editing by Simon Cameron-Moore and Elaine Hardcastle)