Sojitz Plans To Buy Lithium Compound From Australian Mining Firm

Sojitz Plans To Buy Lithium Compound From Aussie Mining Firm -Nikkei Staff Reporters. Dow Jones MetalSource Non-Ferrous Metals TOKYO (Nikkei)--Sojitz Corp. (2768.TO) on Thursday said it has signed a memorandum of understanding with Australian mining firm Talison Lithium Ltd. (TLTHF, TLH.T) to discuss receiving supplies of a compound used to make lithium ion batteries, The Nikkei reported in its Friday morning edition. Talison mines lithium ore in western Australia and elsewhere, producing roughly 35% of the world's supply. It plans to bring its first lithium carbonate plant online in fiscal 2015, with the Australian facility expected to have an initial annual output capacity of 20,000 tons -- about 17% of global consumption last fiscal year. The two firms will explore possible collaboration in the next 12 months, including the marketing of Talison's lithium carbonate to customers in Japan and the amount of the material to be supplied to Sojitz. The Japanese trading house may take a stake in the proposed plant or in the Australian firm. Sojitz anticipates domestic demand for lithium tripling by 2020 as markets for electric and hybrid vehicles continue to expand.