Australian mining company Alchemy Resources said on Monday it had signed a deal for a Japanese government agency to acquire up to 51 per cent of its Roe Hills concession in Western Australia, funding up to $6 million Australian ($4.15 million) in exploration fees.
Alchemy Resources will manage the project during the partnership period, and once Japanese agency JOGMEC acquires its rights to the concessions, the two companies will form a joint venture, the company said in a statement.
The Roe Hills concession is part of the diversified mining company’s Karonie lithium and gold project.
The deal comes amid a global decline in prices for lithium and nickel, materials used in electric vehicle batteries, which have been affected by slower-than-expected adoption of EVs.
The Japan Metals and Energy Security Organization (JOGMEC) is tasked with ensuring a stable supply of resources for Japan amid growing concerns over mineral shortages.
As resource-rich Australia seeks investment from its allies for green energy projects, the deal is part of efforts to support minerals critical to the energy transition, which risks to experience supply chain disruptions.
($1 = 1.4457 dollars Australia)
