Friday, January 16, 2009

Sumitomo Developing Nickel And Lithium Projects

Sumitomo Corp. is bolstering efforts to secure natural resources used in rechargeable batteries before shortages predicted for the future materialize.

The company is working with Professor Kazuharu Yoshizuka of the University of Kitakyushu to create technology for developing lithium resources in Bolivia, where the Salar de Uyuni salts flats have 5.4 million tons of confirmed lithium deposits, half of the world's reserves. Development has been slow due to difficulty extracting the element.

By developing extraction technology ahead of other companies, Sumitomo aims to participate in a Salar de Uyuni development project.

The company is also developing a large-scale nickel mine in Madagascar and aims to place the mine into service in the second half of 2010 at a total cost of US$3.7 billion. The mine is expected to produce 60,000 tons of nickel ore annually, enough to meet 25 per cent of Japan's aggregate demand.

Shortages of rechargeable battery materials are forecast accompanying the growing popularity of hybrid and electric cars. By securing stable procurement routes early, Sumitomo hopes to boost profits.

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