Idemitsu has signed an agreement to increase its shareholding in Australian vanadium developer Vecco to 51%.
This move marks Idemitsu's strategic entry into the critical minerals sector, focusing on vanadium supply chain development.
The investment, totalling A$75m ($47.2m), aims to support renewable energy initiatives and expand business operations globally.
Idemitsu, through its subsidiary Idemitsu Debella, has been investing in Vecco since 2022.
The decision to increase its stake is driven by the anticipated long-term growth and earnings potential of the vanadium business.
The company plans to establish an integrated supply chain for vanadium, from mining to electrolyte production.
Vecco's Debella Project in Queensland, Australia, focuses on developing a vanadium mine and an electrolyte plant for vanadium flow batteries (VFBs).
The project aims to create a competitive local supply chain for vanadium ore mining, vanadium pentoxide refining and vanadium electrolyte production.
Vecco began operating Australia's first commercial-scale vanadium electrolyte facility in June 2023.
Idemitsu plans to conduct a detailed feasibility study for the vanadium mine development in early 2025, with mining facilities construction set for 2026 and operations commencing in 2027.
The company also intends to expand its business by exporting refined vanadium pentoxide to electrolyte plants in the US and other countries.
Australia's rich mineral resources, including vanadium and lithium, make it an ideal location for Idemitsu's expansion into the critical minerals sector.
Idemitsu has more than 45 years of experience in coal mining operations in Australia, which it will leverage to advance the Debella Project.
"We will work with Vecco to steadily advance the project while leveraging our business foundation, including the human resources we have cultivated, our expertise in development, production, transportation, storage and shipping, and our relationships with the Australian Government, local stakeholders and customers," stated Idemitsu.
Through the Debella Project, Idemitsu aims to contribute to the promotion of renewable energy and expand its critical minerals business.
