Sumitomo Corporation - Basic Agreement on Collaboration on Lithium Hydroxide Production in Japan
August 07, 2023 at 09:26 am EDT
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Sumitomo Corporation has agreed with Liontown Resources, an Australian lithium mining company, to start a joint study for the production of lithium hydroxide in Japan.
Lithium is a component of the cathode materials found in lithium-ion batteries used in electric vehicles and battery storage, markets that are expected to grow with the movement toward decarbonization. Because it is difficult to use a substitute or reduce the amount of lithium required, demand is expected to increase significantly with the growing popularity of electric vehicles. And securing its stable supply is an urgent issue.
Australia-based lithium mine development company Liontown Resources boasts one of the world's top hard-rock lithium resources. Its Kathleen Valley Mine in Western Australia has high-grade and will be a major supplier of spodumene concentrate once in production, which is scheduled in mid-2024.
Sumitomo Corporation will collaborate with Liontown Resources to establish a supply chain that extends from the mining and processing of lithium concentrates at the Kathleen Valley Mine in the mineral-rich country of Australia to the production of lithium hydroxide and the stable supply of lithium-ion batteries in Japan and overseas.
Sumitomo Corporation and Liontown Resources will leverage their respective strengths to contribute to the stable supply of lithium and further contribute to the creation of a decarbonized society.
Sumitomo Corporation is a diversified group organized around 7 areas of activity:
- retail distribution of consumer goods (24.4% of net sales): food products, apparel and accessories, pharmaceuticals, building materials, household and decorative items, etc. The group is also developing a real estate business;
- trading of hydrocarbon, mining, chemicals and electronics products (24%): oil, natural gas, copper, gold, silver, zinc, lead, nickel, coal, iron ore, resins, pesticides, petrochemical products, etc.;
- trading of steel products and non ferrous metals (20%): flat and long steel products, tubular products, aluminum products, titanium, etc.;
- distribution of transportation and construction systems and equipments (15.1%): spatial equipments, landing fields, forest machines, motorcycles, mining operating vehicles, etc.;
- telecommunications and multimedia products and services supplies (8.8%): TV wiring, data communication solutions, film distribution services, mobile telephony, Internet access and computing services;
- development and implementation of civil engineering infrastructures (7.6%): power plants, wastewater treatment units, industrial plants, telecommunications centers, etc. The group is also providing logistics services;
- other (0.1%).
SUMITOMO CORPORATION 
