Idemitsu Australia, a subsidiary of Idemitsu Kosan Co.,Ltd., has increased its strategic investment in leading West Australia-based lithium exploration company Delta Lithium (ASX: DLI), formerly known as Red Dirt Metals.
Increasing its shareholding from 2.76 percent to 15 percent from an initial $5 million investment in January 2023, Idemitsu’s strategic partnership with Delta Lithium continues its global strategy to diversify the portfolio and invest in high-growth markets such as lithium as a key component in the production of electric vehicles and energy storage systems.
The additional $46.4 million investment will be used to progress exploration and resource drilling, feasibility studies, environmental approvals, development costs and working capital for both the Mount Ida and Yinnetharra lithium projects.
Idemitsu Australia CEO Steve Kovac said, “Idemitsu’s second major investment in Delta Lithium is another exciting move as we double down on our strategic investments in critical minerals as the world turns to a more advanced renewable future.”
“As global demand for critical minerals and rare earths grow, we continue to target investment opportunities with a focus on energy-related minerals including lithium, vanadium, copper, nickel and graphite.”
The strategic lithium investment follows Idemitsu’s recent significant investments in Vecco Group, a private company developing the Debella Critical Minerals Project located near Julia Creek in Queensland’s north-west minerals province and a vanadium electrolyte manufacturing facility in Townsville, and in Critical Minerals Group (ASX: CMG), a vanadium focused company planning to develop the Lindfield Project, also located near Julia Creek.
Mr Kovac said, “The company’s major investments in Delta Lithium, Vecco Group and Critical Minerals Group support our global strategy to diversify our portfolio of energy assets and transition to a carbon neutral society, while supporting the next generation of mobility with the development of new materials to make the energy transition possible.”
“We continue to seek opportunities where we can be a strategic, long-term investor in other critical minerals ventures in Australia,” he said.
Idemitsu Australia has been operating in the country for more than 40 years, as a subsidiary of Japanese company Idemitsu Kosan Co.,Ltd. and is proactively diversifying its Australian energy portfolio through mining, retail fuels, agriculture and renewable initiatives.
With a focus on innovation, Idemitsu Australia continues to explore green hydrogen, solar, hydro, wind and battery hybrid alternatives across Queensland and New South Wales, and is deeply committed to the safety and wellbeing of its people whilst working with local communities to create sustainable outcomes.
KPMG Corporate Finance acted as Lead Financial Advisor to Idemitsu Australia for the Delta Lithium investment.