Japan’s leading financial trading corporation and an emergent Australian lithium mining firm are set to collaborate on a potential lithium hydroxide production initiative.
In an announcement made on Monday, August 7th, the Sumitomo Corporation and Liontown Resources stated that they would be working together to determine the feasibility of processing lithium hydroxide in Japan, an initiative that will enable that country to have its own sustainable supply of lithium.
The announcement comes in the wake of increasing efforts on the part of nations throughout the globe to ensure that they have ample supplies of the mineral which is the primary component for electric vehicle (EV) batteries as well as portable power storage solutions.
According to official statements, Sumitomo’s collaboration with Liontown is expected to result in the creation of a supply chain that will involve the mining and processing of lithium concentrates in Australia, as well as the commercial production of processed lithium hydroxide in Japan. This will result in a stable domestic supply of the material for Japanese industry with enough to spare to trade abroad.
A representative from Sumitomo added that the joint study will run for about two years and that both companies are set to determine how large the scale of production will be.
As of press time, neither of the parties involved has given further details regarding the collaboration aside from those previously stated, though it is known that Australia is set to finalize several deals regarding the sale of lithium from its mines in Australia’s Kathleen Valley to the likes of South Korea’s LG Energy Solutions, as well as automotive firms Ford and Tesla.