In a significant partnership, Sumitomo Corp and Liontown Resources have announced their collaboration to investigate the feasibility of producing lithium hydroxide in Japan. The strategic move comes amid the growing global demand for lithium, a crucial component used in electric vehicle batteries and battery storage systems.
Liontown Resources is currently advancing the development of the Kathleen Valley lithium mine located in Western Australia. The company is on track to commence production of hard rock lithium concentrate by mid-2024.
As part of the agreement, Sumitomo will work closely with Liontown to establish a comprehensive supply chain that spans from mining and processing lithium concentrates in Australia to manufacturing lithium hydroxide. The primary objective is to ensure a consistent and reliable supply of this valuable metal to Japan and international markets, as stated in Sumitomo’s official statement.
While specific financial terms have not been disclosed, a spokesperson from Sumitomo confirmed that the two entities are embarking on a joint study, expected to last around two years. The study aims to determine the optimal scale for lithium hydroxide production.
Liontown Resources has already secured lucrative agreements to sell lithium from its Kathleen Valley mine to renowned companies such as LG Energy Solutions, Tesla, and Ford.
The collaboration between Sumitomo Corp and Liontown Resources is a significant step forward in the pursuit of sustainable lithium production and underscores the importance of international cooperation to meet the burgeoning demand for electric vehicle technologies. As the world transitions towards cleaner energy solutions, this partnership is likely to play a crucial role in shaping the future of the lithium market.
